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Corporate Governance, Crony capitalism and Economic Crisis: Should the US Business Model replace the Asian Way of 'Doing Business'?

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  • Ajit Singh
  • Ann Zammit
Abstract
This paper considers the Greenspan/Summers/IMF (GSI) argument that the Asian way of doing business was the deep cause of the Asian crisis. The IMF reform programme for the crisis-affected Asian countries suggested they should abandon the Asian business model and adopt the US corporate model. The main findings are: a) contrary to GSI doctrine, poor corporate governance and lack of competition are not common characteristics of the Asian business model; b) that the stock-market based US business model has severe limitations for developing country corporations, not least because of imperfect share prices and the imperfect market for corporate control.

Suggested Citation

  • Ajit Singh & Ann Zammit, 2006. "Corporate Governance, Crony capitalism and Economic Crisis: Should the US Business Model replace the Asian Way of 'Doing Business'?," Working Papers wp329, Centre for Business Research, University of Cambridge.
    • Handle: RePEc:cbr:cbrwps:wp329
    Note: PRO-2
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    References listed on IDEAS

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    2. Yapa, P.W. Senarath, 2014. "In whose interest? An examination of public sector governance in Brunei Darussalam," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(8), pages 803-818.
    3. Alessandro Mechelli & Riccardo Cimini, 2014. "The value relevance of earnings and book value across the EU. A comparative Analysis," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2014(2-3-4), pages 83-113.
    4. Conan Mukherjee, 2019. "On crony capitalism," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 46(1), pages 35-39, March.
    5. Nobert Osemeke & Louis Osemeke, 2017. "The role of auditors in the context of Nigerian environment," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 14(4), pages 299-317, November.
    6. Rajah Rasiah, 2011. "Book Review: The Return of Depression Economics and the Crisis of 2008 by Paul Krugman, New York: Norton, 2009, 191 pp," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(2), pages 387-395, July.
    7. Mai, Nhat Chi, 2012. "FROM BUREAUPRENEUR TO HNWI: CHANGES AND EMERGENCE OF HIGH NET WORTH INDIVIDUALS (HNWIs) IN CHINA," OSF Preprints jhrqv, Center for Open Science.
    8. Mia Rahim & Shawkat Alam, 2014. "Convergence of Corporate Social Responsibility and Corporate Governance in Weak Economies: The case of Bangladesh," Journal of Business Ethics, Springer, vol. 121(4), pages 607-620, June.
    9. Andreas Högberg, 2011. "Family Ownership and Regional Economic Development in Asia and Europe," ERSA conference papers ersa10p940, European Regional Science Association.

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    More about this item

    Keywords

    Asian and US corporate models; stock markets; Asian crisis;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • G3 - Financial Economics - - Corporate Finance and Governance
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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