Corporate governance and debt in the Malaysian financial crisis of 1997-98.
This study attempts to define the concept of corporate governance and evaluates its position against the background of the Malaysian legal system and its company law regime. Because corporate governance has assumed a wide posture in recent years and has drawn core principles, traditionally belonging to the subject of company law, into its parameters, this study is limited to two aspects of the decision-making process of companies, that is, how directors borrow large sums of money for their companies, and whether shareholders are kept informed of such borrowings. Our study reviews data publicly available around 1997 for a few selected KLSE companies on their borrowing policies and practices, and the disclosures of such borrowings to their shareholders.
Manchester, UK, CRC Working Paper, No. 24, 48 pp.