Corporate Governance, Value Creation and Growth
The Bridge between Finance and Enterprise
This publication examines the role of corporate governance arrangements in providing the right incentives to contribute to the value creation process within the private enterprises and the implications of the differences in ownership structures on corporate governance practices and frameworks. It also addresses these global changes from emerging markets perspective and the distinguishing features of these economies that shape their capital markets, corporate structures and corporate governance landscape.
This publication is an important reminder that all those corporate governance rules, regulations and practices that we discuss are not a goal in themselves. They are supposed to be means to a greater end. Be it minority rights, mandatory bids, or independent directors, the rules and regulations that we put in place should serve a purpose. And it is against this purpose and these objectives that the quality of any corporate governance system should be evaluated. So, we need to find a benchmark against which we can assess new regulations and evaluate existing ones.
Malaysian Perspective
This chapter describes the corporate governance framework of Malaysia under the new concept of Growth with Governance master plan for capital market development. The goal of the plan is to promote economic growth and vibrancy of the market that is underpinned by an efficient corporate governance system. Following an overview of the corporate governance developments in Malaysia and Corporate Governance Blueprint that was published in 2011 by the Securities Commission, the chapter analyses the key challenges faced by the emerging markets in the area of corporate governance, such as heavy reliance on regulatory discipline, lack of corporate governance culture and complying with the bare minimum standards.