Friday, May 06, 2005

Sound Corporate Governance Key To Buy-In From Institutional Investors


Corporate governance practices have a significant impact on institutional investors' decisions on which companies to invest in, apart from financial results and solvency factors. This is according to a recent survey jointly conducted by PricewaterhouseCoopers, Investment Management Association of Singapore and Corporate Governance & Financial Reporting Centre (NUS Business School).

Factors Influencing Investment Decisions
2 Although financial results and solvency (mean score of 4.7, 1 = weakest influence, 5 = strongest influence) continue to be listed as factors having the strongest influence on institutional investors' investment decisions, the following corporate governance practices (mean score 3.6) emerge as significant influencers:

See full Article.