Corporate Governance Metrics for Asian Companies: Are They Reliable Indicators of Corporate Performance?


Ethics and Business Law

Date of this version


Document Type



Corporate governance, ratings, ethics, corporate performance


As more investors have bought shares in Asian companies, global interest in these firms' corporate governance has soared. Firms like Institutional Shareholder Services have begun to rate Asian firms' corporate governance, assigning them "Corporate Governance Quotients" (CGQ). Some research suggests that companies with higher CGQs deliver better shareholder returns for investors. The first section of this paper examines whether this positive relation holds true in the Asian market and considers the implications of our findings for Asian managers. The second section raises some more general questions about the value and viability of corporate governance ratings and identifies some dangers associated with corporate governance rating systems.

Published in

International Journal of Business Governance and Ethics

Citation/Other Information

International Journal of Business Governance and Ethics, Volume 5, Number 4, 1 October 2010 , pp. 241-260(20)