Thursday, August 11, 2005

Governance linked to higher returns


Fresh evidence of the link between corporate governance and company performance has been found in Australian companies.

The analysis by Goldman Sachs JB Were of the performance of Australia’s top 200 companies over the past four years found links between corporate governance ratings and various aspects of performance such as share price movement, consensus earnings trends and returns on equity.

The research is based on data produced by Corporate Governance International, a Sydney consultancy, which rates individual companies on a range of criteria including accounting and audit quality, boardroom skills and remuneration policies.

See full Article.