Moving from Unthinking Compliance to Intelligent Engagement in the Reform of Corporate Governance.

Since the spate of corporate collapses in 2001 and 2002, governments worldwide have greatly increased corporate regulation in an attempt to reduce the risk of executive misdeeds and restore the confidence of investors. This article focuses on corporate governance reforms in Australia and uses empirical evidence to examine the response of companies listed on the Australian Stock Exchange (ASX) to the recent wave of regulation. Media reports have criticised the Australian reforms, claiming, among other things, that they dampen entrepreneurial spirit, promote a compliance culture and waste valuable time and resources. This paper explores whether there is any evidence to back these claims or whether, to the contrary, Australian companies actually support and are benefiting from corporate governance reform.Empirical research is steadily gaining acceptance as a method for legal scholars to create and shape hypotheses, as well as for the conclusions it reaches in relation to the effects of legal doctrine and reform. Indeed it can be particularly enlightening in understanding areas of law that include vague standards rather than clear rules. This paper draws on some of the preliminary findings of an empirical study being carried out by the Centre for Corporate Governance at the University of Technology, Sydney. It also makes use of the numerous surveys carried out by the ASX and other organisations that have reviewed corporate responses to the ASX Guidelines. This evidence is used to support and develop the theory surrounding effective regulation of corporate governance. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]