Research On Corporate Governance Of Southeast Asian Corporations

Corporate governance becomes an important topic in academic community with the rapid development of incorporated enterprise. Asian financial crisis in 1997 turn people's attention on the corporate governance of southeast Asia, find that compare with Anglo-American type and continental European or Japanese-type, the corporate governance of southeast Asia has it's own feature.This paper use knowledge and theory of economics, management and law, according to ownership, control and corporation financing, to analyze the character of Southeast Asian corporate governance. Then explain the reason and its result, hi the end, we put forward some advice for strengthening the corporate governance of Southeast Asia, and expound the enlightenment to Chinese corporate governance.First, the paper summarize Southeast Asian ownership and control, point out the character of Southeast Asian corporate governance is highly concentrated ownership and control. Then analyze how controlling shareholders use a little cash-flow rights to control another company just through pyramid structure. The inevitable result of the concentration of ownership and the separation of ownership and control is the agent problem of controlling shareholders and minority shareholders, and in this article, we want to explain the agent problem through the composing of directorate, the protection for minority shareholders in law and the account system-have most important effect to the disclose of information.Then, we generalize the financing mode in Southeast Asia. And to explain the financing mode form the inefficacy of insolvency law, be short of developed capital market, and the loosen regulation of finance system. Bank is the primary outer debtor and the government's intervention to corporate finance will inevitably affect the corporate governance in Southeast Asia greatly. Information asymmetries between the inner owners and external debtors result in the problem of how to monitoring. But the outer monitoring in this countries is weak, because the governance system of the outerdebtor—bank is deficient, the ability of risk measure and risk management is scarce, the governance's assure to the debt, and the noneffective protection for the debtors of insolvency law and insolvency procedures.In the end, we put forward some advice to strengthen corporate governance mainly form three aspect: how the directorate play an important role in inner monitoring better, strengthening minority shareholder rights, improving transparency. And reforming financial system regulations, improving the effectiveness of insolvency law, developing capital market are the advice for corporate governance for external control and management. By other's faults, wise men correct their own. At the ending of the paper, according to the present situation of Chinese corporate governance, thinking about the experience and lesson of Southeast Asian corporate governance, we make some ponder of improving Chinese corporate governance.