Corporate Governance and Communications Transparency in the DaimlerChrysler Post-Merger Era
Reutlingen University, Germany
Volume 1: 2004, pp. 91-110; ABSTRACT
This case study concentrates on comparing the German and U.S. corporate governance systems using the recent experiences of DaimlerChrysler AG and its chairman, Jürgen Schrempp, as reported in the international business press to illuminate differences in investor relations communications practices, in particular. The recent experience of DaimlerChrysler, because of its highly visible role as a “trailblazer” in the U.S. financial markets and due to the difficulties it has encountered, presents an excellent example for analysis of the governance issues inherent in a German-American direct foreign investment situation. Gaining a better understanding of the problems encountered by DaimlerChrysler should allow European business leaders to proactively design their own communications strategy including identifying potential pitfalls for their firms. Without this understanding, European firms could be discouraged from continuing to take advantage of the benefits of international financing and investment available from capital sources in U.S. stock and bond markets and business expansion opportunities in the U.S. product and service markets.