The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
SURVEYS

Best companies in Asia 2006: Managing change, delivering growth

Most investors want to invest in the best companies; Asia is no exception to this. The region’s best-managed companies are a diverse bunch but have some crucial characteristics in common. Chris Leahy reports.

Results   Euromoney Best Asian Company Methodology 2006

asiacompanies.gif

THE RISE OF Asia’s economies thus far has been principally a story of trade and manufacturing, with services becoming the key growth driver in the region’s more developed markets. Start a small import-export business or a factory making consumer goods in a country where the economic tide is rising rapidly and it is not too difficult to make money and grow. As savings pools and foreign exchange reserves expand, increased liquidity inflates asset prices, providing easy money for real estate speculators and stock traders.

Defining what constitutes a well-managed company in Asia, therefore, is not altogether straightforward: it depends how you measure it. With many companies in the region profiting from the asset inflation story, sound management practices and attention to protecting the interests of all shareholders through strong corporate governance principles often take a back seat. Research undertaken over the past three years by CLSA and the Asian Corporate Governance Association (ACGA) demonstrates a clear link between investors’ appetite for risk and their interest in how well a company is being managed.

“The performance of stocks and markets with high levels of corporate governance negatively correlates with risk appetite,” writes Amar Gill of CLSA in CG Watch 2005.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree