Wednesday, July 27, 2005

Profits from probity


It almost sounds too simple. Europe's best run, most transparent companies perform better for shareholders. But it is surprising how few investors take this into account when choosing where to put their money. A new study by SociétéGénérale shows that European companies with best-in-class corporate governance practices have outperformed both the market and their less advanced peers over the last 16 months.

Using criteria devised by CoreRatings, an agency which measures socially responsible performance, SocGen estimates that the gap between best and worst is as much as 7 per cent.

See full Article.