1.7 Research outline

This study is set up in three parts. In part I the research setting is examined further. After the introduction in the underlying chapter, chapter 2 gives a theoretical overview of the concept of corporate governance and the comply or explain principle. Based on economical and legal literature and their confrontation the theoretical framework of the study is sketched. Chapter 3 reviews how corporate governance and more in particular the comply or explain principle can be regulated and qualified. Moreover, the different ways in which the comply or explain principle can be applied are discussed whilst taking cultural dimensions into account.

Part II involves the comply or explain principle in practice. Chapter 4 conducts a comparative legal analysis of corporate governance on a micro level for five countries under review. Per investigated EU country the specifics of the comply or explain principle, the corporate governance system and regulation are addressed. It is explained why the specific country under review is chosen in relation to the others and previous national studies on the comply or explain principle are described, taking the cultural dimensions as clarified in chapter 3 into account. The results of the empirical research and the analysis thereof are laid down in chapter 5. The hypotheses as formulated are tested based on the results of the empirical research and it is reviewed whether and to what extent convergence in regulation and application exists. Chapter 6 gives an analysis of the empirical and theoretical research on the comply or explain principle together to provide recommendations on how the comply or explain principle should be applied in practice, i.e. the conditions that need to be put in place for it to work effectively.

Parts I and II then converge in part III on the recommended route. Part III consists of chapter 7 that contains the conclusions and recommendations with regard to the central research question and the five sub-questions.