A STUDY OF CORPORATE GOVERNANCE PRACTICES OF “S-CHIPS”

Abstract

This thesis examines differences in corporate governance practices between S-Chips (Chinese Companies listed in Singapore) and Singaporean Companies from 2006-2008. It predicts that S-Chips have lower quality of good corporate governance compared to Singaporean Companies. In this thesis, 54 S-Chips are matched with Singaporean Companies listed in the Singapore Stock Exchange (SGX) in accordance to industry and size of revenue. Parametric and .on-parametric tests are used to compare the differences in corporate governance practices between the two groups. The results show that S-Chips have less independent boards, are less likely to engage Big 4 accounting firms as auditors, and hold more Audit committee meetings as compared to Singaporean Companies. Otherwise, there is little difference in the corporate governance practices between S-Chips and Singaporean Companies. This thesis has implications for S-Chips in improving their corporate governance quality; and for regulators in evaluating the effectiveness of corporate governance “best-practices” in improving the corporate governance level of listings in Singapore.