Changes in corporate governance in Kazakhstan and its impact on financial market growth: an empirical analysis (1991-2017)

Purpose - Since its independence, Kazakhstan has been improving its corporate governance system according to recommendations of international organizations. It was promised that the adoption of shareholder primacy approach would have a positive impact on its financial market growth. Therefore, the purpose of this paper is to quantitatively analyse whether Kazakhstani corporate governance is moving towards a shareholder primacy corporate governance approach and its impact on financial market growth. Design/methodology/approach - The paper will conduct a quantitative analysis. Firstly, the changes in corporate governance that occurred between 1991 and 2017 will be analysed using 52 corporate governance variables. Thus, a questionnaire will be used to collect data. When the questionnaire is completed, all data will be converted into numbers. Then, multiple liner regression will be used to estimate the impact of change in corporate governance. Findings - The paper finds that Kazakhstan is successfully adopting shareholder-friendly corporate governance standards and so-called convergence has also occurred. Moreover, it is suggested that reforms in Kazakhstani corporate governance system have not yet brought the desired result of prosperous financial market and high flows of foreign investments. Originality/value - Analysis specifically considers the changes in Kazakhstani corporate governance system and uses quantitative methods, whereas there is a lack (if not complete absence) of quantitative studies regarding Kazakhstani corporate governance.