tailieunhanh - What causes financial crisis in Asian countries

In this paper, we investigate the indicators of financial crisis in Asian countries, focusing more on the impact of corporate governance. Unlike the previous studies such as Johnson et al. (2000) and Acemoglu et al. (2003) that use some fixed measures of corporate governance based on the law in force in a specific year-such as the anti-director right index (ADRI) or the anti-self dealing index (ASDI)—we employ the annual Worldwide Governance Index (WGIs) and the Quality of Governance Index. | Journal of Economics and Development December 2018 pp. 5-19 ISSN 1859 0020 What Causes Financial Crisis in Asian Countries Vo Thi Thuy Anh University of Economics - The University of Danang Vietnam Email vothuyanh@ Ha Xuan Thuy University of Economics - The University of Danang Vietnam Email thuyhx@ Bui Phan Nha Khanh University of Economics - The University of Danang Vietnam Email khanhbpn@ Received 18 April 2018 Revised 21 June 2018 Accepted 10 August 2018 Abstract In this paper we investigate the indicators of financial crisis in Asian countries focusing more on the impact of corporate governance. Unlike the previous studies such as Johnson et al. 2000 and Acemoglu et al. 2003 that use some fixed measures of corporate governance based on the law in force in a specific year such as the anti-director right index ADRI or the anti-self dealing index ASDI we employ the annual Worldwide Governance Index WGIs and the Quality of Governance Index. The regression results which use the data of 19 Asian countries from 1996 to 2015 and control for country fixed effect and the business cycle show that the macroeconomic factors appear to have no effect or a minor effect on currency depreciation. However better corporate governance reduces the decline in currency value. Keywords Financial crisis corporate governance Asian countries legal system. JEL code G01 G18 G38. Journal of Economics and Development 5 Vol. 20 December 2018 1. Introduction Theoretical and empirical research shows that in the process of development countries have cyclically experienced financial crisis and this has created severe socio-economic consequences. Such financial crises have not only affected the original country but have spread their impacts to other relative countries in the region or the world. For decades the severity of financial crises has urged many academics to study the underlying reasons for financial crises to recognize them early and to .