วารสารวิชาการนิติศาสตร์ มหาวิทยาลัยทักษิณ

Corporate Governance and Corporate Disclosure and Transparency Lessons from the Thai Financial Crisis of 1997 .................................................................... Introduction From 1988 to 1995, the Thai economy had attracted massive capital in-flow from overseas investors due to its accommodating economic policies, cheap labour, its location in the heart of South-East Asia, and the stagflation of Japanese economy. Thailand’s export relied on manufacturing, agro-industry, tourism, and, increasingly, financial services. However, a rapid increase in the number of financial institutions, the influx of foreign credit into the economy, a heavy reliance on informal networks to conduct business, poor attention to credit analysis, and the existence of money politics are the main causes of the financial crisis. 3 During the economic crisis of 1997, the Thai economy slumped into a recession and many corporations went bankrupt while several financial institutions were insolvent and forced to close. These consequences led many shareholders, investors and related supervising agencies to investigate and analyze the reasons behind the recession and the financial insecurity and instability. Corporate governance was introduced as a useful concept about a relationship between a board of directors, management team, shareholders and other stakeholders in leading the company’s direction and monitoring and conducting its operations as well as evaluating 3 Jonathan E Lightner. “Thailand’s Financial Crisis : It’s Causes Consequences and Implications,” Journal of Economic Issues, Vol.26(3) (March 2007). วารสารวิชาการนิติศาสตร์ มหาวิทยาลัยทักษิณ ปีที่ 4 ฉบับที่ 6 มกราคม - ธันวาคม 2556 