Globalization, the rapid development and expansion of the Mongolian economy has made the enhancement of corporate governance mechanisms in Mongolia's state-invested companies imperative. Although Mongolian government has made giant...
moreGlobalization, the rapid development and expansion of the Mongolian economy has made the enhancement of corporate governance mechanisms in Mongolia's state-invested companies imperative. Although Mongolian government has made giant strides in promoting private ownership, a good percentage of listed companies are still state owned having significant influence on the country's GDP and total market capitalization. While it is a known fact that adherence to the basic principles of good corporate governance are essential for economic growth and development, they are not usually upheld in government owned enterprises. Transparency, accountability, rule of law and stable investment climate are vital in Mongolia's quest for economic growth and transition to free market. Moreover, in today's internationalized capital markets, only reputable local companies that meet high environmental, health, safety and corporate governance standards are able to attract foreign capital. This makes it even more of a necessity than choice for good corporate governance standards to be maintained in all Mongolian companies; state-invested or privately held. This paper is an attempt at x-raying the transformative efforts of Mongolian government in promoting economic development and growth through improved corporate governance in state-invested enterprises in Mongolia.
