Exploring Corporate Governance Around the World

By Allison Garrett, Senior Vice President for Academic Affairs at Oklahoma Christian University

Monday, April 03, 2006

Corporate Governance in China Improving Slowly

China introduced new laws earlier this year designed to move it forward in the area of corporate governance. But, according to a new report by the Institute of International Finance, China's improvements are still too slow. The 34-page report on China's corporate governance practices notes that there are several other emerging market economies with stronger corporate governance practices. Companies in China must continue to pay a premium to investors to encourage investment in China because of the risks associated with poor governance practices.

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