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Taiwan remains in 5th place in Asian corporate governance rankings

2018/12/10 21:22:46

Taipei, Dec. 10 (CNA) Taiwan has taken fifth place in the 2018 Asian corporate governance (CG) watch rankings conducted by the Asian Corporate Governance Association (ACGA).

The ranking was unchanged from the previous rankings released in 2016, according to the biennial regional report on corporate governance released Dec. 5.

Taiwan finished behind Australia, Hong Kong, Singapore and Malaysia but ahead of Thailand, Japan, India, South Korea, China, the Philippines and Indonesia, according to the market-ranking survey carried out independently by ACGA on macro CG quality in 12 markets in the Indo-Pacific region.

This year, the report, titled "Hard Decision" examines the difficult strategic choices that Asian market participants face in selecting the best way forward for CG reform, such as between dual-class shares and "one share, one vote," between greater powers for regulators and stronger rights for minority shareholders, and how to encourage more meaningful corporate disclosure on issues of governance and sustainability, according to the Taiwan Stock Exchange (TWSE).

The ACGA market survey is significantly different from the eight previous surveys. The structure was reorganized from five thematic categories to seven, based mainly around key stakeholder groups. It also included Australia for the first time.

In 1999, the ACGA was founded in Hong Kong by the California Public Employee Retirement System, the Asian Development Bank, and the Lombard/Asian Private Investment Company as an independent non-profit membership organization dedicated to implementing effective corporate governance practices throughout Asia in order to promote the development of Asian economies and capital markets.

The association has more than 100 members, including global and regional pension investment funds and financial institutions. The ACGA investor members -- pension and asset managers -- have combined global assets under management of more than US$30 trillion.

In 2003, the ACGA issued the first "CG Watch," a survey that looks at Asian markets from the perspective of macro corporate governance quality and individual corporate governance performance of large-cap firms within the markets.

The report is highly valued by regional institutional investors and other market participants.

(By Tien Yu-pin and Evelyn Kao)