East Asian Corporations. Heroes or Villains?

Stijn Claessens (), Simeon Djankov and Larry Lang

World Bank - Discussion Papers from World Bank

Abstract: East Asian corporations differ from their counterparts in other countries in important ways. Before the recent financial crisis these differences were viewed as one of the reasons for the success of East Asian economies. The crisis altered that view, and many scholars now argue that the weak corporate governance and financing structures of East Asian corporations are partly to blame for the recent crisis. This paper reviews several features of East Asian corporations, showing that they have high leverage and concentrated ownership, are typically affiliated with business groups, and operate in multiple industries. These characteristics affected the performance of corporations prior to the crisis as well as their ability to deal with its aftermath. Each economy's level of development also affected how these characteristics interacted with firm performance and valuation. Finally, the concentration of ownership in the hands of a few large families may have influenced economies' institutional development.

Keywords: INDUSTRIAL ORGANISATIONS; CORPORATIONS (search for similar items in EconPapers)
JEL-codes: L10 L20 (search for similar items in EconPapers)
Pages: 33 pages
Date: 1999
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:fth:wobadi:409

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