Convergence and compliance of corporate governance codes: a study of 11 Asian emerging economies
ISSN: 1472-0701
Article publication date: 25 April 2022
Issue publication date: 27 July 2022
Abstract
Purpose
The purpose of this paper is twofold. The first is to explore the convergence of corporate governance (CG) codes of 11 Asian emerging economies with the United Nations (UN) CG guidelines (United Nations Conference on Trade and Development ISAR benchmark). The second is to find the compliance level of firms in each country with the UN CG guidelines.
Design/methodology/approach
Based on the 2017 GDP growth rate, the top 11 emerging economies were selected. CG codes of each country were then analyzed by using content analysis to find the convergence level with the UN CG guidelines. To find the compliance level of individual firms in each sample country, a sample of the top 15 non-financial listed firms were selected from each country, and their annual reports were analyzed. The binary scoring method was used.
Findings
After analyzing the 11 national CG codes, 1 UN CG guidelines and 150 annual reports, this study found that Pakistan and Philippines CG codes have the highest level of convergence toward the outsider model recommended by UN CG guidelines, whereas China and India have the lowest compliance score. The Indian, Chinese, Malaysian and Indonesian listed firms showed more compliance toward the UN CG guidelines than their respective national CG codes.
Originality/value
By analyzing the top 11 emerging economies, and top 15 listed enterprises in each country, this study offered a combined convergence and compliance evidence at two different levels, i.e. country and firm-level. This study’s findings would be equally helpful for regulators, policymakers and investors in assessing their country’s CG codes against the international recommended best practices.
Keywords
Acknowledgements
Conflict of interest statement: On behalf of all authors, the corresponding author states that there is no conflict of interest.
Citation
Tariq, Y.B., Ejaz, A. and Bashir, M.F. (2022), "Convergence and compliance of corporate governance codes: a study of 11 Asian emerging economies", Corporate Governance, Vol. 22 No. 6, pp. 1293-1307. https://doi.org/10.1108/CG-08-2021-0302
Publisher
:Emerald Publishing Limited
Copyright © 2022, Emerald Publishing Limited