Does Asia Really Have Poorer Corporate Governance?: Evidence from International Variations in Transparency

David Lee, Kuo Chuen and Greg N. Gregoriou, (eds), Handbook of Asian Finance and Sovereign Wealth Funds (Amsterdam: Elsevier). 2014

33 Pages Posted: 25 Jan 2015

See all articles by Raj Aggarwal

Raj Aggarwal

University of Akron; Federal Reserve Banks - Federal Reserve Bank of Cleveland; Kent State University; Kent State University Foundation

John W. Goodell

University of Akron - Department of Finance, College of Business Administration

Date Written: January 1, 2014

Abstract

Prior literature contending that corporate governance in Asia is poor ignores disclosure of self-dealing. This paper overcomes this deficiency as it examines the determinants of measures against self-dealing in business transactions in sixty countries, focusing especially on Asian countries controlling for national culture and relevant economic variables. We document that higher self-dealing transparency is positively associated with the Asian region. We also find that governance disclosure is negatively associated with uncertainty avoidance and positively associated with an English legal origin and greater economic inequality. Given that the Asian region has often been regarded as having poorer governance, our study will be of considerable interest to investors, managers, and policy makers.

Keywords: Governance, Transparency, Disclosure levels, National culture, Legal origin, Financial architecture

JEL Classification: G10, G20, K2

Suggested Citation

Aggarwal, Raj and Goodell, John W., Does Asia Really Have Poorer Corporate Governance?: Evidence from International Variations in Transparency (January 1, 2014). David Lee, Kuo Chuen and Greg N. Gregoriou, (eds), Handbook of Asian Finance and Sovereign Wealth Funds (Amsterdam: Elsevier). 2014, Available at SSRN: https://ssrn.com/abstract=2554613

Raj Aggarwal (Contact Author)

University of Akron ( email )

Akron, OH 44325-4803
United States

Federal Reserve Banks - Federal Reserve Bank of Cleveland ( email )

East 6th & Superior
Cleveland, OH 44101-1387
United States

Kent State University ( email )

College of Business Administration
Kent, OH 44242-0001
United States

Kent State University Foundation ( email )

Akron, OH 44325-4803
United States

John W. Goodell

University of Akron - Department of Finance, College of Business Administration ( email )

259 S. Broadway
Akron, OH 44325
United States

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