Corporate governance gained immense importance subsequent to the Asian financial crisis in mid-1997. Companies that used existing resources in an inefficient way and did not conform to international corporate management standards helped magnify the effects of the crisis in those countries. Corporate transparency and accountability are so critical for overall economic performance that they have begun to be the accepted norm throughout the world since the Asian crisis. The recent spate of US corporate failures …showed first 75 words of 350 total…

…showed last 75 words of 350 total…be traced to scandals and breaches of trust, public support wanes and the market becomes unworkable. The state's reputation is also at stake. This underscores a widespread public - and hence political - interest in reinforcing corporate governance practices. Such concerns become even more Important in an international context where the full benefits of free capital flows will only be realized if there is a mutual understanding on the basic elements of good corporate governance.