CRISIL YOUNG THOUGHT LEADER

- By Divya Padmanabhan

 "In evaluating people, you look for three

qualities: integrity, intelligence, and energy. And if you don't have the first, the other two will kill you. --Oracle of Omaha

How did some controversial group companies fare in 2011?

Company Name
Adani Enterprises Ltd. Adani Power Ltd. Essar Oil Ltd. Essar Ports Ltd. Jindal South West Holdings Ltd. Jindal Stainless Ltd. Jindal Steel and Power Ltd. JSW Energy Ltd. JSW Steel Ltd. Reliance Broadcast Network Ltd. Reliance Capital Ltd. Reliance Communications Ltd. Reliance Infrastructure Ltd Reliance Mediaworks Ltd. Reliance Power Ltd Unitech Ltd. Reliance Industries Ltd. Reliance Industrial Infrastructure Ltd.

Business Group/ Promoter

Adani Group Adani Group Essar Group Essar Group OP Jindal Group OP Jindal Group OP Jindal Group OP Jindal Group OP Jindal Group ADAG Group ADAG Group ADAG Group ADAG Group ADAG Group ADAG Group Unitech Group Mukesh Ambani Mukesh Ambani

Change* (%)
-55% -52% -64% -53% -73% -33% -36% -62% -57% -40% -65% -52% -60% -70% -55% -71% -35% -60%

RELEVANCE OF CORPORATE GOVERNANCE IN EMERGING ECONOMIES

- with respect to ASEAN Bloc

Corporate Governance:
It refers to the rules, processes, or laws by which businesses are operated, regulated, and controlled. It includes internal factors defined by the officers, stockholders or constitution of a corporation. It also includes external forces such as consumer groups, clients, and government regulations.

participants in corporate governance systems

CORPORATE GOVERNANCE LANDSCAPE IN ASEAN ECONOMIES:

It was established in 1967 to boost trade and

development in East-Asia.
Includes 10 countries, added 6 more countries

including India.
Its governance practices came into limelight

after 1997 East Asian Crisis.

PROBLEMS UNDER CORPORATE GOVERNANCE IN ASEAN ECONOMIES

High concentration of ownership.
Low level of property right protection. Ineffective banking regulation. Lack of transparency

Challenges In Implementing Corporate Governance In ASEAN Economies

Cultural and social differences.

Contrasting legal and financial institutional structures.

Suggestions and Recommendations

Stringent norms

Principle based approach

Linking CEO rewards to performance Market based economy

Minority shareholders- independent directors

Third party monitoring- banks and rating agencies

CONCLUSION
Introducing new laws and institutions alone is not enough. Reform can succeed only when these institutional changes are accompanied by changes in peoples attitude. This is the real test. - South Korean President Kim Dae-jung

 "If calculus or algebra were required to be a

great investor, I'd have to go back to delivering newspapers." - Warren Buffett

Thank you