Corporate Governance In Developing Economies PDF Download

The present paper aims at reviewing the various facets of developments in Corporate Governance practices in the emerging economies with special focus on India. Corporate Governance (CG) has gained a lot of importance and momentum the world over. It has become a buzzword in the world corporate sector. It has emerged as a means of achieving corporate excellence and a driving force for firm to accomplishing better performance, maximize the stakeholders' wealth and corporate value. It shapes the efficiency of firms, the stability of employment, the fortunes of suppliers, distributors and other stakeholders. Achieving good corporate governance by eliminating inefficiencies and unethical business practices is very vital to economic prosperity, especially for the emerging economies. Besides, the corporate scams and frauds that came to light in recent time have brought about a change and necessitated substantial external regulations apart from internal controls and regulations. A series of events for the last two decades have made corporate governance issues of paramount importance both for the international business community and international financial institutions. Business failures and frauds in the USA, several scandals in Russia and the Asian crisis (1997) have brought corporate governance issues to the forefront in the developing countries and transition economies. Likewise, the Asian financial crisis also demonstrated that even strong economies lacking in transparent control, responsible corporate boards and shareholder rights, could collapse due to the dilution of investors' confidence. Most of Indian corporate governance shortcomings are no worse than in other Asian countries, signifying that corporate fraud and tunneling in India are not out of control. In this context an effort is made here to identify the emerging challenges in the complex global market milieu. There are a number of causes for which Corporate Governance can provide a mechanism to improve efficiency, transparency, the emergence of corporate governance in India, apart from the ethically ambiguous business practices and scams in the market environment. The paper shows that India has good CG mechanism and disclosure practices on par with its world counterparts. It also shows that the CG in India is not an outcome of corporate failures in the country as in other countries of the world like the US and UK. India has made efforts voluntarily to tone up the performance and efficiency of its corporate sector. But it had to face varied issues in the process.