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July/August 1998, 
Vol. 80, No. 4
Posted 1998-07-01

Universal Banking, Control Rights and Corporate Finance in Germany

by William R. Emmons and Frank A. Schmid

This article describes the most important corporate governance practices in contemporary Germany. These practices include a prominent role for universal banks, other large financial and non-financial firms, and employees through a system known as codetermination. While some similarities exist, many features of corporate governance in Germany differ greatly from those found in the Unites States. The author also provides historical background and a review of the existing empirical evidence on these topics.