In this article we look at the evolution of corporate governance reform in the emerging economies of China and India. First we describe the two main drivers of management reform in these countries, privatization and globalization. After summing up the evolution of management reforms in a given situation, we are four main obstacles to their implementation in both countries, namely: (1) lack of incentives, (2) by the dominant shareholder, (3) Lack of external monitoring, and (4) lack of qualified independent directors. Next, we highlight the practical implications of these issues for the management of foreign companies are considering or already involved in large investments in these emerging economies. We emphasize that foreign firms, which are sensitive to the context of the specific problems are likely to put in place appropriate contractual or other security, and to identify more practical and meaningful forms of participation in the management of their enterprises. Finally, we conclude with some implications for future research. "Hide
by Nandini Rajagopalan, Zhang Yan Source: Business Horizons 10 pages. Publication Date: January 1, 2008. Prod. #: BH264-PDF-ENG
Related Case Solutions & Analyses:
Why the Highest Price Isnt the Best Price
Coopers Brewery
Lucent Technologies Inc. (A)
Progressive Insurance: Disclosure Strategy
Policy Management Systems Corp.: The Financial Reporting Crisis
Building an Effective Global Business Team
Acer Inc.: Taiwans Rampaging Dragon
Snowden
Manchester Bidwell Corporation: The Replication Question
The Fox Islands Wind Project (A)
