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/lp/world-scientific-publishing-company/the-effectiveness-of-corporate-governance-codes-long-term-analysis-eT7sfTDroL
- Publisher
- World Scientific Publishing Company
- Copyright
- Copyright ©
- ISSN
- 1793-9933
- eISSN
- 1793-9941
- DOI
- 10.1142/S1793993311000294
- Publisher site
- See Article on Publisher Site
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.
Journal
Journal of International Commerce, Economics and Policy – World Scientific Publishing Company
Published: Dec 1, 2011
Keywords: Board of directors codes of good governance corporate governance East Asia