Corporate Governance Country Assessment : Republic of the Philippines
Corporate governance in the Philippines is characterized by concentrated ownership by a limited number of family shareholders, within a bank-dominated financial market. A comprehensive set of corporate law and capital market regulations are enforce...
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| Format: | Pre-2003 Economic or Sector Report |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2001/09/6583447/philippines-report-observance-standards-codes-rosc-corporate-governance-country-assessment http://hdl.handle.net/10986/14523 |
| Summary: | Corporate governance in the Philippines
is characterized by concentrated ownership by a limited
number of family shareholders, within a bank-dominated
financial market. A comprehensive set of corporate law and
capital market regulations are enforced by relatively weak
institutions that are undergoing restructuring reforms. As
in many East Asian countries, the need to strengthen
corporate governance was highlighted during the financial
crisis in the region, and recent securities market scandals.
This report benchmarks Philippine corporate governance
against the OECD Principles of Corporate Governance, which
have been recognized as one of the core standards
underpinning the international financial architecture. As
such, the report focuses primarily on corporate governance
issues affecting listed companies and equity providers.
Recommendations on related corporate governance issues such
as banking and the governance of group structures, though
relevant to the reform dialogue, are beyond the scope of
this report. (Two parallel ROSCs are being prepared to
assess the Philippines on accounting and auditing, and
insolvency and creditor rights, which will provide greater
detail on these issues.) The policy recommendations in this
ROSC are intended to highlight areas in which the Philippine
corporate governance system could be strengthened. They are
grouped under four main headings: improving the disclosure
of non-financial information, strengthening the rights of
(minority) shareholders, enhancing the role of the board of
directors, and ensuring the independence of the audit. |
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