5.4.2 Choice for 5 countries

In this study the application of the comply or explain principle of five countries, Belgium, Germany, Italy, the Netherlands and the United Kingdom, is researched. These five countries have been chosen because each of these countries has a unique kind of comply or explain principle and a specific judicial corporate governance arrangement. As already explained in chapters 3 and 4, table 5.4.2 below shows the five judicial corporate governance arrangements in conjunction with the countries and years researched.

For each judicial corporate governance arrangement at least one country is researched. Therefore, the whole spectrum from pure self-regulation (a comply or explain principle with few obligations) to the regulation of self-regulation (meta-regulation) is researched. Regarding arrangements B and C two countries are even reviewed because of the large differences within these arrangements and the shift in the corporate governance arrangement of Italy. Furthermore, it is of interest to discuss the similarities and differences between these specific countries, since the UK was the first to implement the principle and Italy, with its history of corporate scandals, has only recently done so (Enriques 2009, p. 9). In the previous chapter 4 the specifics of the judicial arrangements of the countries under review have been explained further.