The financial crisis that overran much of Asia in the late 1990s prompted most of the affected countries—joined later by India—to make improved corporate governance a priority. Nearly all of them now require listed companies to have independent directors and audit committees (Exhibit 1). Agreement is growing, at least in principle, on what good governance entails, and most countries in the region have adopted explicit governance codes (see "Why codes of governance work"). Securities laws and the listing requirements of stock exchanges have been strengthened, regulatory authorities have enhanced powers, and the media are more inquisitive and probing.
See full Article