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Corporate Governance in ASEAN Financial Corporations: reality or illusion?

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  • Wiparat Chuanrommanee
  • Fredric William Swierczek

Abstract

According to Credit Lyonnais Securities Asia, Singapore has the best corporate governance practices in Asia. Malaysia has had the biggest improvements in governance overtime. Thailand lags behind both in achieving appropriate governance. This paper considers recent developments in corporate governance through the analysis of the corporate websites of financial corporations in these countries. The study finds that the corporate governance practices of Thai, Malaysian and Singaporean financial corporations are consistent with international best practices. Corporate governance as presented in company documents probably does not actually reflect real corporate governance practices. These practices do not have an impact on company performance. The level of corporate governance reported is also not consistent with the ratings from international financial institutions such as Credit Lyonnais Securities Asia and Standard & Poor’s. These findings suggest that corporate governance in ASEAN is more illusion than fact.

Suggested Citation

  • Wiparat Chuanrommanee & Fredric William Swierczek, 2007. "Corporate Governance in ASEAN Financial Corporations: reality or illusion?," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(2), pages 272-283, March.
    • Handle: RePEc:bla:corgov:v:15:y:2007:i:2:p:272-283
    DOI: 10.1111/j.1467-8683.2007.00559.x
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    Cited by:

    1. Farzaneh Nassir Zadeh & Davood Askarany & Solmaz Arefi Asl, 2022. "Accounting Conservatism and Earnings Quality," JRFM, MDPI, vol. 15(9), pages 1-18, September.
    2. Nguyen, Tuan & Locke, Stuart & Reddy, Krishna, 2014. "A dynamic estimation of governance structures and financial performance for Singaporean companies," Economic Modelling, Elsevier, vol. 40(C), pages 1-11.
    3. Nguyen, Tuan & Locke, Stuart & Reddy, Krishna, 2015. "Ownership concentration and corporate performance from a dynamic perspective: Does national governance quality matter?," International Review of Financial Analysis, Elsevier, vol. 41(C), pages 148-161.
    4. Amin, Qazi Awais & Liu, Jia, 2020. "Shareholders' control rights, family ownership and the firm's leverage decisions," International Review of Financial Analysis, Elsevier, vol. 72(C).
    5. Sahar E-Vahdati & Norhayah Zulkifli & Zarina Zakaria, 2018. "A Moderated Mediation Model for Board Diversity and Corporate Performance in ASEAN Countries," Sustainability, MDPI, vol. 10(2), pages 1-20, February.
    6. Ameer, Rashid, 2010. "The role of institutional investors in the inventory and cash management practices of firms in Asia," Journal of Multinational Financial Management, Elsevier, vol. 20(2-3), pages 126-143, July.

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