A one-size-fits-all approach to corporate governance is poorly conceived

IN the United States financial markets, investor, media and regulatory focus is predominantly upon the largest listed companies. The large-cap bias in the US, and other global markets, belies a poignant capital markets fact: the overwhelming majority of listed companies are comparatively small.

For example, in the US, nearly seven out of every 10 listed companies have a market capitalisation of less than US$1 billion. Approximately 47 per cent of listed companies have market capitalisation below US$300 million.

According to Mak Yuen Teen, an associate professor of the NUS Business School and corporate governance expert, the proportion of small to large listed companies is even more dramatic in Singapore. Approximately 85 per cent of Singapore's listed companies have market capitalisation of less than S$1 billion, and nearly 70 per cent have market capitalisation below S$300 million.