Study on Corporate Governance in Emerging Markets: A Focus on Compliance of South African and South Korean Listed Companies

Journal of Korea Trade Vol. 23, No. 6, October 2019, 93-112

20 Pages Posted: 29 Jan 2020

See all articles by Joseph-Kwaku Ahialey

Joseph-Kwaku Ahialey

Pai Chai University - Department of Business Administration

Ho-Jung Kang

Pai Chai University - Department of Business Administration

Date Written: October 20, 2019

Abstract

Purpose – First, this study contextually examines the governance codes of South Africa and South Korea. Second, it analyzes board features of South African (JSE) Mainboard and South Korean (KRX) KOSPI-listed companies.

Design/methodology – This review is qualitative and uses data from the annual reports of the selected markets’ companies, respective exchanges’ official web sites and corporate governance-related web sites in order to examine the corporate governance practices in the two markets. In addition, Nvivo is employed in analyzing the content of the corporate governance codes of the selected countries.

Findings – Our analysis indicates that the corporate governance codes of the two countries are evolving to keep up with the international trend of principles-based approach. The composition of the board of directors (BODs) of non-financial companies of both South Africa and South Korea shows no significant variation between the companies with regards to the executive (inside) and nonexecutive (outside) directors. On the contrary, there is a significant variation between South African and South Korean listed companies with respect to diversity.

Originality/value – While previous studies are centered on the impact of governance codes on performance, this study intends to contextually evaluate the codes and features of South Africa and South Korea listed companies. This is essential and timely for regulators and policy makers given the importance of corporate governance features such as board independence and diversity in recent times.

Keywords: Board of Directors, Compliance, JSE, KRX, Ownership Structure

JEL Classification: G32, G34, G38

Suggested Citation

Ahialey, Joseph-Kwaku and Kang, Ho-Jung, Study on Corporate Governance in Emerging Markets: A Focus on Compliance of South African and South Korean Listed Companies (October 20, 2019). Journal of Korea Trade Vol. 23, No. 6, October 2019, 93-112 , Available at SSRN: https://ssrn.com/abstract=3514412

Joseph-Kwaku Ahialey (Contact Author)

Pai Chai University - Department of Business Administration ( email )

155-40 Baejae-ro
Seo-gu, Daejeon
Korea, Republic of (South Korea)

Ho-Jung Kang

Pai Chai University - Department of Business Administration ( email )

155-40 Baejae-ro
Seo-gu, Daejeon
Korea, Republic of (South Korea)

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