Corporate Governance and Performance

A brief review and assessment of the evidence for a link between corporate governance and performance.

Introduction
The objective of Hermes' corporate governance activities is the improvement of the performance of the companies in which it invests on behalf and for the benefit of its clients. Furthermore, we believe the active promotion of good corporate governance in investee companies increases shareholder value in the long term.

In this paper we review the evidence for a link between corporate governance and performance and conclude that the research we have found supports the proposition that underlies our corporate governance work.

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