The effectiveness of corporate governance codes: Long-term analysis from East Asia

Chen, En Te & Nowland, John (2011) The effectiveness of corporate governance codes: Long-term analysis from East Asia. Journal of International Commerce, Economics and Policy, 2(2), pp. 229-250.

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Abstract

This study examines the effectiveness of corporate governance codes in four East Asian markets by investigating the timing and persistence of firm compliance with code recommendations. Over the period 1999 to 2009 we find a number of significant improvements in code compliance, but not all can be attributed to the introduction of code recommendations. We also provide evidence of the codes having unintended consequences — firms previously with higher board or committee independence reducing their independence to code recommendation levels. Our results suggest that code recommendations targeting the creation of new mechanisms (e.g., remuneration committees) have been effective but that policymakers need to be particularly careful when formulating code recommendations about existing governance practices.

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ID Code: 52242
Item Type: Journal Article
Refereed: Yes
Keywords: Board of directors, codes of good governance, corporate governance, East Asia
DOI: 10.1142/S1793993311000294
ISSN: 1793-9941
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BANKING FINANCE AND INVESTMENT (150200) > Finance (150201)
Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Corporate Governance and Stakeholder Engagement (150303)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Economics & Finance
Deposited On: 19 Jul 2012 06:28
Last Modified: 02 Apr 2017 22:41

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