The Centre for International Governance Innovation

The Centre for International Governance Innovation

January 23, 2007 12:35 ET

Significant Gaps Exist Between Corporate Governance Rules and Practice in East Asia, CIGI Paper Concludes

WATERLOO, CANADA--(CCNMatthews - Jan. 23, 2007) - The formal regulatory environment and market perceptions of corporate governance practices in nine East Asian economies diverge on a number of fronts, concludes a working paper released by The Centre for International Governance Innovation (CIGI).

The paper, entitled "Scorecard on Corporate Governance in East Asia", is authored by two recognized experts on the subject: Stephen Y.L Cheung is professor and chair of Finance, Department of Economics and Finance at the Faculty of Business, City University of Hong Kong; and, Hasung Jang is executive director, Asian Institute of Corporate Governance, Korea University.

The CIGI funded study employs two surveys to measure the perceptions of fund managers and analysts in nine East Asian economies (China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Taiwan, and Thailand) against established corporate governance frameworks in the region. In particular, the study looks at progress made by these economies toward implementing the regulations established by the Pacific Economic Cooperation Council (PECC) in the aftermath of the Asian financial crisis of 1997.

This study concludes that there is not a significant correlation between the rules and regulations pertaining to corporate governance in the nine economies and how corporate governance is actually seen to be practiced in each economy. Reforms that were deemed necessary by regional and international players following the devastating financial crisis have been enacted unevenly, leaving many initiatives for the economies to implement if they really intend to strengthen their corporate governance practices. These quantitative conclusions are significant for policy-makers and corporate actors that are operating in, or looking to engage with, the nine East Asian economies surveyed.

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About CIGI

CIGI, located in Waterloo, Ontario, is a not-for-profit, non-partisan think tank founded in 2002 that conducts research and advises on issues of international governance, focusing on international relations and economic policy research. CIGI builds ideas for global change through research, conferences and publications working with government leaders, public officials, civil society, academic researchers, post-secondary students, opinion leaders, the media and the interested public. CIGI's IGLOO™ (International Governance Leaders and Organizations Online) is an online network that facilitates knowledge exchange between individuals and organizations studying, working or advising on global issues, a project financially supported by Ontario's Ministry of Research and Innovation. Visit or

To request a hard copy of this Working Paper contact Colleen Fitzpatrick

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