Ever since the fallout of financial scandals at Enron, WorldCom, and other well-known and lesser-known companies, investors have been paying more attention to corporate governance than at any other time in history. But little, in Standard & Poor's view, has been said about how to incorporate the evaluation of governance into an investment strategy -- and whether it even pays off to do so.
"I believe that there's a close relationship between a company's management commitment toward the ethical and responsible stewardship of shareholder assets with that of the firm's stock performance over time," says Kenneth Shea, head of S&P global equity research.
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