Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
Hostname: page-component-cd9895bd7-gvvz8 Total loading time: 0 Render date: 2024-12-27T05:04:52.719Z Has data issue: false hasContentIssue false
Series:   Elements in Corporate Governance

Asian Corporate Governance

Trends and Challenges

Published online by Cambridge University Press:  09 March 2018

Toru Yoshikawa
Toru Yoshikawa
Affiliation:
Singapore Management University

Summary

This Element aims to achieve three objectives. First, it explores some key institutional characteristics of several Asian economies that are relevant to corporate governance practices. Second, it reviews corporate governance codes or rules in those economies and examines levels of requirements in terms of formal rules. Third, this Element looks at recent trends related to corporate governance such as executive compensation and a proportion of independent directors on boards of large listed firms.
Get access

Keywords

corporate governanceAsiacorporate governance codesboard of directorsexecutive compensation
Type
Element
Information
Series: Elements in Corporate Governance
Online ISBN: 9781108552936
Publisher: Cambridge University Press
Print publication: 22 March 2018

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Aguilera, R.V., Desender, K.A., & Kabbach de Castro, L.R. 2011. A Configurational Approach to Comparative Corporate Governance. In Clarke, T. & Branson, D. (eds.). The Sage Handbook of Corporate Governance. New York: Sage Publications, 380–405.Google Scholar
Ahmadjian, C.L. & Robinson, P. 2001. Safety in numbers: Downsizing and the deinstitutionalization of permanent employment in Japan. Administrative Science Quarterly, 46: 622–654.Google Scholar
Ahmadjian, C.L. & Son, J. 2004. Corporate Governance Reform in Japan and South Korea: Two Paths of Globalization. Discussion Paper Series, APEC Study Center, Columbia Business School.Google Scholar
Aoki, M., Jackson, G., & Miyajima, H. 2007. Corporate Governance in Japan: Institutional Change and Organizational Diversity. Oxford, UK: Oxford University Press.CrossRefGoogle Scholar
Charkham, J. 1994. Keeping Good Company: A Study of Corporate Governance in Five Countries. Oxford: Clarendon Press.Google Scholar
Chen, C.C.J. 2016. Solving the Puzzle of Corporate Governance of State-owned Enterprises: The Path of Temasek Model in Singapore and Lessons for China. Singapore Management University, Research Collection School of Law.Google Scholar
Chiang, L. 2008. China gives state firms $8 billion to combat slowdown. Reuters. Retrieved 22 May 2017 from www.reuters.com/article/sppage024-pek162453-oisnr-idUSPEK1624532008112.Google Scholar
Chizema, A. & Kim, J. 2010. Outside directors on Korean boards: Governance and institutions. Journal of Management Studies, 47: 109–129.Google Scholar
Choi, J.J., Park, S.W., & Yoo, S.S. 2007. The value of outside directors: Evidence from corporate governance reform in Korea. Journal of Financial and Quantitative Analysis, 42: 941–962.CrossRefGoogle Scholar
Chung, C.N. & Mahmood, I.P. 2010. Business Groups in Taiwan. In Colpan, A.M., Lincoln, J., & Hikino, T. (eds.). The Oxford Handbook of Business Groups. Oxford, UK: Oxford University Press.Google Scholar
CLSA and ACGA. 2007. CG Watch 2007: Corporate Governance in Asia. Hong Kong: Credit Lyonnais Securities Asia, Asian Corporate Governance Association.Google Scholar
CLSA and ACGA. 2010. CG Watch 2010: Corporate Governance in Asia. Hong Kong: Credit Lyonnais Securities Asia, Asian Corporate Governance Association.Google Scholar
CLSA and ACGA. 2012. CG Watch 2012: Corporate Governance in Asia. Hong Kong: Credit Lyonnais Securities Asia, Asian Corporate Governance Association.Google Scholar
CLSA and ACGA. 2014. CG Watch 2014: Corporate Governance in Asia. Hong Kong: Credit Lyonnais Securities Asia, Asian Corporate Governance Association.Google Scholar
CLSA and ACGA. 2016. CG Watch 2016: Ecosystems Matter, Asia’s Path to Better Home-grown Governance. Hong Kong: Credit Lyonnais Securities Asia, Asian Corporate Governance Association.Google Scholar
Colpan, A.M. & Yoshikawa, T. 2012. Performance sensitivity of executive pay: The role of foreign investors and affiliated directors in Japan. Corporate Governance: An International Review, 20: 547–561.CrossRefGoogle Scholar
Crossland, C. & Hambrick, D.C. 2011. Differences in managerial discretion across countries: How nation-level institutions affect the degree to which CEOs matter. Strategic Management Journal, 32: 797–819.Google Scholar
Daiwa Research Institute. 2017. Consulting insight, points on 2017 June general shareholders’ meeting. April 26.Google Scholar
David, P., O’Brien, J.P., Yoshikawa, T., & Delios, A. 2010. Do shareholders or stakeholders appropriate the rents from corporate diversification? The influence of ownership structure. Academy of Management Journal, 53: 636–654.Google Scholar
Economist Intelligence Unit and Andersen Consulting. 2000. Beyond the Bamboo Network: Successful Strategies for Change in Asia. Hong Kong, China: Economist Intelligence Unit.Google Scholar
Ethical Boardroom. 2017. Corporate Governance in Japan Now. Retrieved from Ethical Boardroom: https://ethicalboardroom.com/corporate-governance-in-japan-now/. 22 March.Google Scholar
EY. 2012. Revised Code of Corporate Governance. Retrieved 2 May 2017 from www.ey.com/sg/en/services/assurance/board-matters-quarterly–issue-12–june-2012–revised-code-of-corporate-governance.Google Scholar
Fich, E.M. & Shivdasani, A. 2006. Are busy boards effective monitors? The Journal of Finance, 61: 689–724.Google Scholar
Financial Services Agency. 2014. Principles for responsible institutional investors. Retrieved from www.fsa.go.jp/en/refer/councils/stewardship/20140407/01.pdf. 26 February.Google Scholar
Forbes. 2017. The world’s biggest public companies. Retrieved 31 May 2017 from www.forbes.com/global2000/list/.Google Scholar
Gedajlovic, E. & Shapiro, D.M. 2002. Ownership structure and firm profitability in Japan. Academy of Management Journal, 45: 565–575.Google Scholar
Geng, X., Yoshikawa, T., & Colpan, A.M. 2016. Leveraging foreign institutional logic in the adoption of stock option pay among Japanese firms. Strategic Management Journal, 37: 1472–1492.Google Scholar
Gerlach, M.L. 1992. Alliance Capitalism: The Social Organizations of Japanese Business. Berkeley, CA: University of California Press.Google Scholar
Gomez, E.T. 2012. State-Business Linkages in Southeast Asia: The Development State, Neo-Liberalism, and Enterprise Development. In Walter, A. & Zhang, X. (eds.). East Asian Capitalism: Diversity, Continuity and Change. Oxford, UK: Oxford University Press, 68–88.CrossRefGoogle Scholar
Goswami, S. 2017. Study finds India is Asia’s most corrupt country, while Japan comes in last. Retrieved from Forbes: www.forbes.com/sites/suparnagoswami/2017/03/08/study-finds-india-is-asias-most-corrupt-country-while-japan-comes-in-last/#5b3876c81201. 8 March.Google Scholar
Gourevitch, P. & Shinn, J.J. 2005. Political Power and Corporate control: The New Global Politics of Corporate Governance. Princeton: Princeton University Press.Google Scholar
Hamilton-Hart, N. 2002. Asian States, Asian Bankers: Central Banking in Southeast Asia. New York: Cornell University Press.Google Scholar
Hay Group. 2013. Retrieved 2 May 2017 from www.haygroup.com/downloads/sg/Hay%20Group%20Top%20Exec%20SG%20press%20release_Feb%202013.pdf.Google Scholar
Hay Group. 2014. Retrieved 2 May 2017 from www.haygroup.com/downloads/sg/Singapore%20CEO%20pay%20shows%20flat%20trend%20while%20company%20profitability%20dipsv2.pdf.Google Scholar
IIF. 2006. Corporate Governance in Malaysia: An Investor Perspective. The Institute of International Finance, Inc.Google Scholar
ISCA. 2014. Singapore directorship report. Retrieved 2 May 2017 from https://isca.org.sg/media/776653/sg-directorship-report.pdf.Google Scholar
ISCA. 2016. SID-ISCA Singapore Directorship Report 2016: More boards have greater proportion of independent directors (IDs) and increase in lead IDs. Retrieved 2 May 2017 from www.isca.org.sg/the-institute/newsroom/media-releases/2016/october/sid-isca-singapore-directorship-report-2016-more-boards-have-greater-proportion-of-independent-directors-ids-and-increase-in-lead-ids/.Google Scholar
Jiang, F. & Kim, K.A. 2015. Corporate governance in China: A modern perspective. Journal of Corporate Finance, 32: 190–216.Google Scholar
Kim, H. & Lee, J.H. 2012. Transformation of Corporate Governance in Korea. In Rasheed, A.A. & Yoshikawa, T. (eds.). The Convergence of Corporate Governance: Promise and Prospects. Basingstoke: Palgrave Macmillan, 137–168.Google Scholar
Kim, S.Y., Lee, K.R., & Shin, H.-H. 2017. The enhanced disclosure of executive compensation in Korean. Pacific-Basin Finance Journal, 43: 72–83.Google Scholar
Leong, C.H. 2016. The Motley Fool. Retrieved 2 May 2017 from www.fool.sg/2016/07/14/how-have-government-linked-companies-in-singapores-stock-market-fared/. 14 July.Google Scholar
Leutert, W. 2016. Challenges ahead in China’s reform of SOE. Asia Policy, 21: 83–99. The National Bureau of Asian Research, Seattle, Washington.CrossRefGoogle Scholar
Li, K., Wang, T., Cheung, C-L., & Jiang, P. 2011. Privatization and risk sharing: Evidence from the split share structure reform in China. Review of Financial Studies, 24: 2499–2525.Google Scholar
Minority Shareholder Watchdog Group. 2016. Key corporate governance statistics of public listed companies in Malaysia. Retrieved 5 June 2017 from www.mswg.org.my/key-corporate-governance-statistics-of-public-listed-companies-in-malaysiaGoogle Scholar
Miwa, Y. & Ramseyer, J.M. 2005. Who appoints them, what do they do? Evidence on outside directors from Japan. Journal of Economics and Management Strategy, 14: 299–337.Google Scholar
Monetary Authority of Singapore. 2017. MAS announces establishment of Corporate Governance Council to review the Code of Corporate Governance. Retrieved 2 May 2017 from www.mas.gov.sg/News-and-Publications/Media-Releases/2017/MAS-Announces-Establishment-of-Corporate-Governance-Council.aspxGoogle Scholar
National University of Singapore. 2015. Ranking of the 100 largest Singapore listed companies by market capitalisation based on the ASEAN Corporate Governance Scorecard (ACGS). Retrieved 2 May 2017 from https://bschool.nus.edu/Portals/0/docs/CGIO/acgs-2015-sg-100cos.pdfGoogle Scholar
National University of Singapore. 2015. Governance of government-linked companies in Singapore. Retrieved 2 May 2017 from http://law.nus.edu.sg/clb/events/EACG_Dialogue_Conference2015/pdfs/mak_gglcs_slides.pdf.Google Scholar
OECD. 2004. OECD economic survey: Korea 2004. New York: OECD Publishing.Google Scholar
Oh, D. & Ahn, S.A. 2015. Retrieved from International Law Financial Review: www.iflr.com/Article/3429769/Improving-South-Korean-corporate-governance.html. February 25.Google Scholar
Phan, P.H. & Yoshikawa, T. 2004. Corporate Governance in Singapore: Developments and Prognoses. Paper presented at the Academy of International Business Annual Meeting, Stockholm.Google Scholar
Prowse, S. 1998. Corporate Governance: Emerging Issues and Lessons from East Asia. Washington, DC: World Bank.Google Scholar
Rajagopalan, N. & Zhang, Y. 2008. Corporate governance reforms in China and India: Challenges and opportunities. Business Horizons, 51: 55–64.Google Scholar
Reuters. 2016. China bank chiefs‘ already low pay cut in half even as problems mount. April 5. http://www.reuters.com/article/china-banks-pay/update-2Google Scholar
Sakamoto, M. & Harima, Y. 2014. Companies Act Reform 2014. Retrieved from City Yuwa Partners: www.city-yuwa.com/english/publication/shared/PDF/JLG201415_cy_56–59.pdfGoogle Scholar
SASAC. 2017. Central Enterprises Directory. Retrieved 22 May 2017 from www.sasac.gov.cn/n86114/n86137/index.htmlGoogle Scholar
Securities and Futures Institute. 2007. Corporate Governance in Taiwan. Taipei, May.Google Scholar
Securities Commission Malaysia. 2016. SC releases new Malaysian Code on Corporate Governance to strengthen corporate culture. Retrieved 5 June 2017 from www.sc.com.my/post_archive/sc-releases-new-malaysian-code-on-corporate-governance-to-strengthen-corporate-culture/Google Scholar
Securities Commission Malaysia. 2016. Corporate governance. Retrieved 5 June 2017 from www.sc.com.my/general-section/corporate-governance/Google Scholar
Sheard, P. 1994. Interlocking Shareholdings and Corporate Governance. In Aoki, M. & Dore, R. (eds.). The Japanese Firm: The Sources of Competitive Strength. Oxford, UK: Oxford University Press, 310–349.Google Scholar
Tan, L.H., Tan, C.T., & Ching, L. H. 2006. Corporate Governance of Listed Companies in Singapore. Singapore: Sweet & Maxwell Asia.Google Scholar
Temasek Holdings. 2016. Temasek review 2016. Retrieved 2 May 2017 from www.temasekreview.com.sg/overview/portfolio-highlights.htmlGoogle Scholar
The Economist. 2015. China’s state-owned enterprises: A winper, not a bang. The Economist, September 19.Google Scholar
Tokyo Stock Exchange. 2015. TSE-listed companies white paper on corporate governance. Tokyo.Google Scholar
Tokyo Stock Exchange. 2015. TSE-listed companies white paper on corporate governance. Tokyo.Google Scholar
Tokyo Stock Exchange. 2015. Japan’s Corporate Governance Code. Retrieved from www.jpx.co.jp/english/equities/listing/cg/tvdivq0000008jdy-att/20150513.pdf.Google Scholar
Transparency Korea Chapter. 2017. Retrieved from Transparency Korea chapter: www.transparency-korea.org/2017/01/corruption-perceptions-index-cpi-2016/Google Scholar
Tsui-Auch, L.S., Yang, J.J., & Yoshikawa, T. 2016. Change and Continuity in Corporate Governance Structures: A Study of Korea, Malaysia and Singapore. In Whitley, R. & Zhang, X. (eds.). Changing Asian Business System. Oxford, UK: Oxford University Press, 209–228.Google Scholar
Tsui-Auch, L.S. & Yoshikawa, T. 2010. Business Groups in Singapore. In Colpan, A., Hikino, T., & Lincoln, J. (eds.). The Oxford Handbook of Business Groups. Oxford, UK: Oxford University Press, 267–293.Google Scholar
Tsui-Auch, L.S. & Yoshikawa, T. 2015. Institutional change versus resilience: A study of incorporation of independent directors in Singapore banks. Asian Business & Management, 14: 91–115.Google Scholar
Williams, A. 2015. The Straits Times. Retrieved 2 May 2017 from www.straitstimes.com/business/singapore-still-the-highest-for-executive-pay-in-asia-but-hong-kong-catching-up-survey. 12 March.Google Scholar
World Bank. 2012. Malaysia – Report on the Observance of Standards and Codes (ROSC): Corporate Governance Country Assessment. Washington, DC: World Bank.Google Scholar
Xiang, C.H. 2016. Proportion of IDs on boards of listed firms on the rise: Study. Business Times. Retrieved 2 May 2017 from www.businesstimes.com.sg/companies-markets/proportion-of-ids-on-boards-of-listed-firms-on-the-rise-study.Google Scholar
Yoshikawa, T. 2010. The Case of Singapore. In Iturriaga, F.J.L. (ed.). Codes of Good Governance Around the World. Hauppauge, NY: Nova Science Publishers, 543–554.Google Scholar
Yoshikawa, T. & Rasheed, A. 2009. Convergence of corporate governance: Critical review and future directions. Corporate Governance: An International Review, 17: 388–404.CrossRefGoogle Scholar
Yoshikawa, T., Zhu, H., & Wang, P. 2014. National governance system, corporate ownership, and roles of outside directors: A corporate governance bundle perspective. Corporate Governance: An International Review, 22: 252–265.Google Scholar

Save element to Kindle

To save this element to your Kindle, first ensure no-reply@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Asian Corporate Governance
  • Toru Yoshikawa, Singapore Management University
  • Online ISBN: 9781108552936
Available formats
×

Save element to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Asian Corporate Governance
  • Toru Yoshikawa, Singapore Management University
  • Online ISBN: 9781108552936
Available formats
×

Save element to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Asian Corporate Governance
  • Toru Yoshikawa, Singapore Management University
  • Online ISBN: 9781108552936
Available formats
×