Corporate Governance in Kazakhstan

Introduction

Like other central Asian countries, corporate governance (CG) practices in Kazakhstan are still in their infancy. Transition from a socialist command economy to a capitalist free market economy, lax standards of practice, poor law enforcement capability, distorted or inaccurate stock market information, and a lack of qualified CG professionals are among the potential reasons for such governance conditions. However, the country needs to improve CG practices to ensure transparency and accountability of the board members and the top executives and ultimately to improve organizational performance and efficiency (Mahmood and Orazalin 2017). Developing better governance practices will enhance investors’ trust in the publicly listed companies. Prior to the IPOs of large public sector organizations, these improved practices will help Kazakhstan’s capital market to flourish, and people will buy shares of the public listed companies. Better governance practices will improve...