Empirical analysis of the impact of country-level corporate governance on starting a business in Asian countries

Abstract

The purpose of this study is to investigate the impact of corporate governance on starting a business in some Asian countries over a period from 2012 to 2017. Nine Asian countries on the basis of availability of data for the research period were selected for this study. Corporate governance is measured by the Worldwide Governance Indicators of the World Bank and starting a business is measured by the score of starting business reported by the Ease of Doing Business Report of the World Bank Group. The findings of the present study reveal that voice and accountability, political stability and absence of violence and regulatory quality have statistically significant effect on starting a business in the selected countries. While both political stability and absence of violence and regulatory quality are found to have statistical significant positive influence on starting a business, voice and accountability exhibits a significant negative effect on starting a business. However, the results reported that both government effectiveness and control of corruption exhibit an insignificant negative effect on starting a business, rule of law is found to have an insignificant positive impact on starting a business.