ABSTRACT
Many observers agree that the German stakeholder system of corporate gover nance is under pressure to transform itself. Convergence theorists argue that its main features are inconsistent with the requirements of globalised financial and product markets. Therefore, it is predicted that German companies must change their behaviour significantly towards patterns prevalent in Anglo-Saxon corpo rate governance if they want to stay competitive. Above all, this means a shareholder value orientation in business policy. These claims are not undis puted. Theories of divergence, especially the ‘varieties of capitalism’ approach, argue that different institutional frameworks lead to different responses to globalisation, to distinct adjustment paths of firms and to a reinforcement of their strategies and structures.
