Corporate Governance Reform

Abstract

This paper explains that as corporation as a business form and availability of finance are the two most important foundations for economic growth and globalization in the world, to ensure the sustainability of growth and globalization, it is important for corporations, especially MNCs, to be run not solely for profit maximization but also for the benefits of stakeholders, and for stock exchanges to have appropriate balance of regulation to ensure the continued availability of finance from capital market. The Anglo-America idea of profit maximization is misconceived by economists and inconsistent with legal theories and history. Whilst Asia-Pacific has come under pressure to converge to the Anglo-American model of corporate governance as a result of global competition, and has done so in some respects, there is no conclusive evidence that the Anglo-American model is more superior.