Corporate governance and finance in East Asia: a study of Indonesia, Republic of Korea, Malaysia, Philippines, and Thailand

Corporate governance has become a major policy concern in the wake of the Asian financial crisis. Weak governance structure, poor investment, and risky financing practices of the corporate sector in the affected countries contributed to their sharp economic recession in 1997-1998. The weaknesses in corporate governance and finance undermined the capacity of these countries to withstand the combined shocks of depreciated currencies, mass capital outflows, increased rates, and large contraction in domestic demand. To help understand the corporate governance issues and their impact, as well as to identify needs for interventions in addressing policy and institutional weaknesses, the Economics and Development Resource Center of the Asian Development Bank (ADB) undertook a regional study on corporate governance and finance in selected developing member countries. The countries covered are Indonesia, Republic of Korea, Malaysia, Philippines, and Thailand. This book presents the major findings of the study. The policy recommendations will support ADB's financial sector work in its developing member countries.