Developing a Corporate Governance Index to Drive Efficiency in Asian Emerging Economies

Developing a Corporate Governance Index to Drive Efficiency in Asian Emerging Economies | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Article Developing a Corporate Governance Index to Drive Efficiency in Asian Emerging Economies Muhammad Farooq Shabbir, Sadaf Hafeez This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-7189821/v1 This work is licensed under a CC BY 4.0 License Status: Under Revision Version 1 posted 16 You are reading this latest preprint version Abstract This study investigates the relationship between corporate governance mechanisms and firm efficiency in emerging Asian economies, using a robust governance index tailored to the unique socio-economic and regulatory landscapes of these markets. Technical efficiency is captured as a superior proxy for firm performance by employing stochastic frontier analysis on a panel dataset spanning 2005 to 2022, overcoming the limitations of traditional financial metrics. The findings show that governance provisions, such as board independence, shareholder protection, effectiveness of the audit committee, CSR commitments, and sustainability initiatives, significantly enhance firm efficiency. Importantly, R&D investments are positively correlated with efficiency highlighting their role in driving innovation and long-term value creation. The findings of this study offer policymakers, investors, and firms’ actionable frameworks for improving governance practices and fostering sustainable economic growth in dynamic emerging markets. Business and commerce/Business and management Social science/Business and management Business and commerce/Economics Social science/Economics Earth and environmental sciences/Environmental social sciences Business and commerce/Finance Social science/Finance Governance Index Efficiency Emerging Markets Corporate Governance Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Under Revision Version 1 posted Editorial decision: Revision requested 13 Oct, 2025 Reviews received at journal 13 Oct, 2025 Reviews received at journal 11 Oct, 2025 Reviewers agreed at journal 05 Oct, 2025 Reviewers agreed at journal 05 Oct, 2025 Reviews received at journal 29 Sep, 2025 Reviews received at journal 14 Sep, 2025 Reviewers agreed at journal 09 Sep, 2025 Reviews received at journal 09 Sep, 2025 Reviewers agreed at journal 07 Sep, 2025 Reviewers agreed at journal 03 Sep, 2025 Reviewers invited by journal 03 Sep, 2025 Editor assigned by journal 03 Sep, 2025 Editor invited by journal 03 Sep, 2025 Submission checks completed at journal 29 Aug, 2025 First submitted to journal 06 Aug, 2025 You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. 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