ABSTRACT
The process of globalisation resulted in the years 1990s in the extension of finance investments to areas which before were not the aim of such investments, particularly the countries of the former East bloc as well as China and India. Ethical and economic values must be taken into account in the globalised capital market. Amongst the explanations given for hostile takeovers, it is especially the free cash flow-hypothesis introduced by Jensen that points to the danger of the managements shirking in mature corporations and industries. The threat of hostile takeovers to be taken over by international management teams and investors in globalised markets reduces the management's inclination to keep returns on capital or profits in the firm. The synthesis between the Anglo-American principle of the capital market as the market for corporate control and the German principle of co-determination as employee representation in corporate governance on the board level is possible also under conditions of globalisation.
