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.