Further Analysis of Some Northen Asian Corporate Governance Standards After the Global Crisis: Cases in Bangladesh and Mongolia

Introduction

The nature of the environment in which contemporary businesses function is systemic which is described in corporate governance practices or codes.

Corporate governance help firms maintain vitality, growth and stability. And according to Charter governance Institute UK & Ireland, Governance at a corporate level includes the processes through which a company’s objectives are set and pursued in the context of the social, regulatory and market environment. It is concerned with practices and procedures for trying to make sure that a company is run in such a way that it achieves its objectives, while ensuring that stakeholders can have confidence that their trust in that company is well founded.

In the light of different views on Corporate Governance and Company Acts, which are among interests of many organizations (mentioned in literature review below), after financial crisis 2007-2009, this paper mainly concentrates on analysis of Code of Best Practices for Corporate Governance in selected northern Asian countries and separates it from the analysis of relevant Company Act and Accounting regulations, which can be used as reference for further scopes. Despite of trying to select an easy-reading writing style, there is still some academic words need to be explained in further.

According to Investopedia: It became apparent by August 2007 that the financial markets could not solve the subprime crisis and that the problems were reverberating well beyond the U.S. borders. By the summer of 2008, the carnage was spreading across the financial sector. IndyMac Bank became one of the largest banks ever to fail in the U.S., and the country's two biggest home lenders, Fannie Mae and Freddie Mac, had been seized by the U.S. government. Yet the collapse of the venerable Wall Street bank Lehman Brothers in September marked the largest bankruptcy in U.S. history. The financial crisis of 2007–2008 was years in the making. By the summer of 2007, financial markets around the world were showing signs that the reckoning was overdue for a years-long binge on cheap credit. Two Bear Stearns hedge funds had collapsed, BNP Paribas was warning investors that they might not be able to withdraw money from three of its funds, and the British bank Northern Rock was about to seek emergency funding from the Bank of England. It was an epic financial and economic collapse that cost many ordinary people their jobs, their life savings, their homes, or all three.

The objective of this study is to identify good practices in governance from presenting/comparing proper governance models in Bangladesh and Mongolia while it uses international standards as references.

This paper is organized as following. First (1^st) section is Research literature review, which gives us a summary of what has been done in this field. Next, second (2^nd) section provides some theories in corporate governance and manipulation. The third (3^rd) section handles with empirical research findings and performing a comparative analysis among different Codes.

And final (4^th) section turns to the conclusion and policy suggestion. Last but not least, a reference and web resources are introduced for further research and analysis. At last, there are exhibit section which covers some summary of this paper’s analysis and comparison. And a glossary notes is provided with information for reference.