7.5 Final remarks

This underlying research focuses on the comply or explain principle, both in practice and theoretically. The aim is to contribute to a common understanding of the principle's scope and most effective form in order to make the principle work in practice as intended: enhancing the corporate governance within companies whilst making 'made to measure' compliance possible. Although a central element of EU corporate governance, the comply or explain principle is surprisingly not often a topic of research, let alone internationally researched, covering a period of more than one year. As acknowledged by the EU Commission, improvements in the application of the principle are deemed necessary, therefore further research is of interest. The users of the corporate governance statements are best served by understandable, company-specific and transparent statements. However, it must be kept in mind that the comply or explain principle is not a panacea and has its weaknesses. Formal code compliance can be monitored by means of the principle, but whether actual compliance with code provisions within the companies is performed (material compliance) remains the question. As self-regulation is concerned, success is only within reach when enough awareness and support exists. To end with the beginning of this thesis: as it is a central element of EU corporate governance, constant care is required to keep the comply or explain principle on top form.