Corporate Governance Reforms in Emerging Countries: a Case Study of Bangladesh
Corporate Governance Reforms in Emerging Countries: A Case Study of Bangladesh
Pallab Kumar Biswas
E-mail: twig083@yahoo.com
Working Paper: Please Do Not Cite
December 2012
Abstract: This paper considers three related research questions, all in the context of an emerging economy, Bangladesh: What is the history of Corporate Governance (CG) reform in Bangladesh? What explains the introduction of CG guidelines in Bangladesh? and How have the country-level initiatives to improve CG influenced the firm-level practices of CG? By analysing the agency environment and CG reforms in Bangladesh, this paper finds that, in spite of the number of reform initiatives undertaken since the early 1990‟s, there is scope for further improvement, particularly in monitoring and enforcement by regulators; both external bodies, particularly the International Financial Agencies (IFAs), and domestic forces have affected the extent of CG reform in Bangladesh; and CG regulations take effect over time as the listed companies in Bangladesh are gradually changing their CG practices, based on compliance with the national guidelines. Besides, the introduction of the annual corporate awards by the professional institutions also seems to motivate companies to improve their governance practices. Key words: Corporate governance, reforms, International Financial Agencies
Pallab Kumar Biswas is an Assistant Professor in the Department of Accounting & Information Systems, University of Dhaka, Bangladesh. This paper is a part of his Ph.D. thesis submitted at the University of Western Australia. The author would like to acknowledge the comments and suggestions made by his supervisor, Emeritus Professor Philip Brown.
Corporate Governance Reforms in Emerging Countries: A Case Study of Bangladesh
1 Introduction
Governance arrangements observed in a particular country evolve over many years, even over centuries, although country-wide changes may be introduced in response to a spate of
Pallab Kumar Biswas
E-mail: twig083@yahoo.com
Working Paper: Please Do Not Cite
December 2012
Abstract: This paper considers three related research questions, all in the context of an emerging economy, Bangladesh: What is the history of Corporate Governance (CG) reform in Bangladesh? What explains the introduction of CG guidelines in Bangladesh? and How have the country-level initiatives to improve CG influenced the firm-level practices of CG? By analysing the agency environment and CG reforms in Bangladesh, this paper finds that, in spite of the number of reform initiatives undertaken since the early 1990‟s, there is scope for further improvement, particularly in monitoring and enforcement by regulators; both external bodies, particularly the International Financial Agencies (IFAs), and domestic forces have affected the extent of CG reform in Bangladesh; and CG regulations take effect over time as the listed companies in Bangladesh are gradually changing their CG practices, based on compliance with the national guidelines. Besides, the introduction of the annual corporate awards by the professional institutions also seems to motivate companies to improve their governance practices. Key words: Corporate governance, reforms, International Financial Agencies
Pallab Kumar Biswas is an Assistant Professor in the Department of Accounting & Information Systems, University of Dhaka, Bangladesh. This paper is a part of his Ph.D. thesis submitted at the University of Western Australia. The author would like to acknowledge the comments and suggestions made by his supervisor, Emeritus Professor Philip Brown.
Corporate Governance Reforms in Emerging Countries: A Case Study of Bangladesh
1 Introduction
Governance arrangements observed in a particular country evolve over many years, even over centuries, although country-wide changes may be introduced in response to a spate of
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