Value-Up Initiatives as a Strategy for Corporate Governance and Capital Market Development: Lessons from Asia

Over the past several years, a new form of corporate governance and capital market intervention has spread across Asia. Beginning with Malaysia and gaining international prominence following the Tokyo Stock Exchange’s 2023 initiative, several Asian jurisdictions, including Korea, Taiwan, Mainland China, Thailand and Singapore have adopted what this article broadly refers to as “value-up initiatives.” We provide a comparative assessment of these initiatives, emphasising their potential and limitations as a strategy for corporate governance and capital market development. The article starts by explaining why value-up initiatives have emerged so prominently in Asia and how they have been designed differently across the region. By encouraging boards to confront questions of capital allocation and valuation while improving the information available to investors, we argue that value-up initiatives can serve as a valuable corporate governance tool. Their effectiveness, however, depends on the institutional and market environment in which they operate, and they should be understood as complements, rather than substitutes, for effective legal and enforcement mechanisms for protecting investors. The article concludes by explaining how the Asian experience with value-up initiatives can offer valuable lessons for jurisdictions seeking to strengthen corporate governance while contributing to the development of capital markets.