Corporate Governance in Asia: Recent Evidence from Indonesia, Republic of Korea, Malaysia, and Thailand

This book is the result of a survey of corporate governance practices in Malaysia, Indonesia, Thailand, and the Republic of Korea. Corporate secretaries at 307 exchange-listed companies and 596 directors or commissioners participated.

The survey covers shareholder rights and information disclosure, effectiveness of the boards of directors, and the roles of stakeholders. Also attempted, on the basis of the survey, is the quantitative analysis of the linkage between the quality of corporate governance and corporate performance. Some of the findings from the survey include:

• among the four countries, corporate governance seems to be substantially better in Malaysia and Thailand than in the Republic of Korea and Indonesia
• the effectiveness of the boards of directors, showing a relatively large variation among the sample firms, is probably the highest priority for sound corporate governance
• such stakeholders as employees and banks currently play little role in corporate governance though they appear to have a strong potential in the future
• corporate governance clearly matters (in terms of stock valuation) for the whole sample as well as for the Republic of Korea and Indonesia – where the governance quality is poorer.

The book is an edited version of a paper with the same title, which in turn represents a synthesis of papers presented at the Review of Corporate Governance in Asia Seminar

The views expressed in this paper are the views of the author/s and do not necessarily reflect the views or policies of the Asian Development Bank Institute nor the Asian Development Bank. Names of countries or economies mentioned are chosen by the author/s, in the exercise of his/her/their academic freedom, and the Institute is in no way responsible for such usage.

Download this Book [ PDF 649.2KB| 212 pages ].

Post a Comment

We welcome your feedback on this publication. Post a comment. ADBI is not obliged to acknowledge or publish comments and may abridge or edit them before web posting.

Comment(s)

There are [1] comment(s) for this entry. Post a comment.

1. Alexandra R. Lajoux
   (posted 05 September 2005 / 10:11:17 PM)
   
   Thank you for providing this rigorous quantitative and qualitative study of the effects of corporate governance reforms in Indonesia, Republic of Korea, Malaysia, and Thailand. I will be citing your research in the 2006 editon of The Art of M&A Integration (McGraw-Hill, 2006), in the chapter on shareholder rights. I might also cite your works in some of my writings for my employer, NACD, if I have occasion to write about international governance (see below).
   Sincerely,
   Alexandra Reed Lajoux
   Chief Knowledge Officer
   National Association of Corporate Directors
   Washington, DC