Corporate Governance in Asia

Abstract

There is a serious dearth of systematic research studies on corporate governance in the region. It is suspected that weaknesses in corporate governance were partly responsible for the poor investment decisions and risky financing practices that led to non-performing loans and large-scale bankruptcy during the Asian crisis. Some post-crisis analyses have started to blame certain governance factors as leading to the crisis, such as lending by banks to related companies, family control, lack of transparency, poor disclosure rules and weak regulatory framework.