Hong Kong

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)12_Chapter in an edited book (Author)peer-review

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Detail(s)

Original languageEnglish
Title of host publicationCORPORATE GOVERNANCE IN ASIA
Subtitle of host publicationA COMPARATIVE APPROACH
EditorsBruce Aronson, Joongi Kim
Place of PublicationUnited Kingdom
PublisherCambridge University Press
Chapter6
Pages150-181
ISBN (Print)9781108420778, 9781108430876
Publication statusPublished - May 2019

Abstract

Since the 1990s, Hong Kong has been working hard to improve its corporate governance system. Although a common law jurisdiction, its stock market differs from the NYSE and LSE, as there has always been a large concentration of ownership which brings a set of different agency problems, namely expropriation of minority interests rather than managerial abuses. But at the same time, there is an increasing number of mainland state-owned enterprises (SOEs) in the market which brings all types of agency problems, namely managerial abuses, expropriation of minority interest, and the failure to pursue shareholder value maximization. To add to the complication, 85 percent of the listed companies are not incorporated in Hong Kong, which means that many provisions in the Companies Ordinance do not apply. Thus, the regulators including the exchange and the Securities and Futures Commission (SFC) have to think outside the box to come up with effective measures to improve corporate governance. By and large, they have succeeded in crafting a system that is comparable to the international standards. However, room for further improvement remains in the effective enforcement of those standards.

Citation Format(s)

Hong Kong. / LIN, Yu-Hsin; GOO, S. H.

CORPORATE GOVERNANCE IN ASIA: A COMPARATIVE APPROACH. ed. / Bruce Aronson; Joongi Kim. United Kingdom : Cambridge University Press, 2019. p. 150-181.

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)12_Chapter in an edited book (Author)peer-review