Scorecard on Corporate Governance in East Asia

CIGI Working Paper No. 13

49 Pages Posted: 25 Feb 2007

See all articles by Hasung Jang

Hasung Jang

Korea University - Department of Finance

Stephen Yan-Leung Cheung

City University of Hong Kong (CityUHK) - Department of Economics & Finance

Date Written: December 2006

Abstract

The far reaching economic effects of the 1997 Asian financial crisis underscore the importance of structural reforms in the governance of the East Asian business sector. This paper measures the progress of corporate governance reforms in nine East Asian economies towards the guidelines established by the Pacific Economic Cooperation Council (PECC), as revealed empirically through two surveys. The first survey is a stock-taking exercise to take note of on-going reforms in corporate governance rules and regulations, while the second covers perceptions of the implementation and enforcement of corporate governance rules as seen by fund managers and analysts. This study indicates a divergence between the regulatory environment and market perceptions of corporate governance practices in the countries sampled. The survey results also show that, although the nine economies do not differ significantly in the corporate governance rules and regulations they have put in place, there is a significant difference in terms of market perceptions of their corporate governance practices. More than an academic exercise, this study is meant to share the experiences of corporate governance reform among East Asian economies.

Keywords: Corporate Governance, East Asia, PECC, survey, asian financial crisis, financial reform, market perceptions

Suggested Citation

Jang, Hasung and Cheung, Stephen Yan-Leung, Scorecard on Corporate Governance in East Asia (December 2006). Available at SSRN: https://ssrn.com/abstract=964908 or http://dx.doi.org/10.2139/ssrn.964908

Hasung Jang

Korea University - Department of Finance ( email )

Seoul, 136-701
United States

Stephen Yan-Leung Cheung (Contact Author)

City University of Hong Kong (CityUHK) - Department of Economics & Finance ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong
+852 2788 7960 (Phone)
+852 2788 8806 (Fax)

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