Large corporate failures, financial scandals and economic crises in several countries, have focused attention on the importance of corporate governance. The policy of large financial institution in financing companies through loans or equity, has come to include conditions on corporate governance in these companies. Significantly, CalPERS, the largest American pension fund and one of the United States' largest foreign investors, has published a set of minimum standards to which in its views the market throughout the world should strive to adhere. CalPERS is committed to pursuing good corporate governance from the companies in which the fund invests. This policy is likely to be adopted by an increasing number of institutional investors worldwide, as they are themselves under growing scrutiny from their shareholders. Countries with low standards of corporate governance are increasingly excluded from the lists of countries that international funds are allowed to invest in.
A recent survey of McKinsey & Company indicated that fund managers in Asia would pay 26 - 30% more for stocks companies with good corporate governance than for stocks of companies with doubtful corporate governance.
All this means that countries and companies with good corporate governance will have better access to international capital than those without good corporate governance.
Recognizing the increasing importance of corporate governance, government and business associations in many countries, both industrialized and developing, have started to develop or improve national systems of corporate governance. Since 1992, dozens of countries have started national initiatives to improve corporate governance in their economies. Countries such as the United States, Germany, Australia, Brazil, South Korea, Thailand, Malaysia and India have drawn up national reports and started to implement, on government and on company level, recommendations drawn up by expert groups.
In Asian countries, the development of corporate governance is an important part of the economic reforms that are essential in overcoming the economic crisis.