The Role of Corporate Governance to Foreign Direct Investments on Emerging Countries in Southeast Asia

Yap, Roy Kok Meng (2021) The Role of Corporate Governance to Foreign Direct Investments on Emerging Countries in Southeast Asia. Doctoral thesis, University of Wales Trinity Saint David.

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Abstract

During the ASEAN financial crisis in 1997-1998 and 2008, corporate governance has become an imperative issue with foreign direct investments (FDIs). This topic has been lingering within the research communities and many major investment entities across the globe. Although significant inflow of FDI continues to flow into Asia (FDISTAT, United Nations Conference on Trade and Development 2007-2018), the lack of corporate governance at the macroeconomic level in certain emerging countries has been depriving the inflow of FDI. Developing ASEAN countries continue to fall behind their counterparts in receiving inwards of FDI compared with Singapore, Malaysia, and Thailand. According to UNCTAD’s World Investment Report 2020, the total global FDI flows was valued at US$1.54 trillion in 2019, and foreign institutional investors are risk-averse, especially when dealing with countries with weak corporate governance. Developing stringent regulatory policies on governance in the ASEAN nations can impact these economies at the macroeconomic level. The surplus FDIs often lead to better economic and fiscal policy for emerging nations in the ASEAN. This research is descriptive exploratory and follows the primary qualitative and secondary sources as quantitative analysis to learn the determinants between corporate governance (CG) and FDI in ASEAN. This research methodology is likewise termed Embedded Mixed Methods design, as interviewing, sharing the respondents' experience, perception, or phenomena of governance can only be qualitative. Secondary data sources on the governances' six indicators fall on Voice and Accountability, Political Stability and Absence of Violence, Regulatory Quality, Rule of Law, Control of Corruption and Government Effectiveness. These indicators are used as independent variables for quantitative analysis to investigate corporate governance and dependent variable FDI at the microeconomic level within the sample countries. The qualitative analysis from the respondents suggested that corporate-level (C-level) management and board members must actively involve in the corporate practices consisting of learning, training, and management to drive effective CG. The quantitative results have also shown a significant positive and negative relationship between governance indicators and foreign direct investment. Pearson Product Moment Correlation was statistically applied to illustrate these variables' strength, direction, and probability with FDI.

Item Type: Thesis (Doctoral)
Subjects: D History General and Old World > DS Asia
H Social Sciences > HG Finance
Divisions: Theses and Dissertations > Doctoral Theses
Depositing User: Lesley Cresswell
Date Deposited: 06 Oct 2021 15:49
Last Modified: 06 Oct 2021 15:55
URI: https://repository.uwtsd.ac.uk/id/eprint/1804

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