ECN 802 Lecture Notes - Lecture 4: Charoen Pokphand, Soltyrei, Exchange Rate
17 Jul 2014
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Document Summary
Beginning to resemble western economies: south korea. Laws enacted to increase the role of outside directors, audit committee. Also for banks: singapore, malaysia and thailand at least 1/3 of the members of the board were required to be from outside the company, better accountability. Interest groups have become stronger after 1997 in south korea and malaysia to protect the rights of minority shareholders. Governance from outside directors will always remain a challenge in asia. Dominant shareholders: dominant shareholders attitude is also changing. To attract foreign partners in a global economy they have to meet with global standards on disclosure of information. Involving professional management in decision making, hands off approach. Pioneers of change: ayala group from philippines. Previous strategy cross holding group, weaker companies being supported by stronger companies. New equity issued to foreign companies to finance new ventures: hutchinson whampoa. Asset sales to strategic investors: new mode. To compete internationally in terms of quality and technology.
