Wednesday, October 19, 2005

The Irresistible Case for Corporate Governance


Good corporate governance won’t just keep your companies out of trouble. Well-governed companies often draw huge investment premiums, get access to cheaper debt, and outperform their peers.

How much is good governance worth to a company? Will good practices raise your bond rating a notch…or two? Will your stock price soar 160%? 70,000%? Will investors pay a premium to own your stock of 20%? 30%?

A commitment to good corporate governance—well-defined shareholder rights, a solid control environment, high levels of transparency and disclosure, and an empowered board of directors—make a company both more attractive to investors and lenders, and more profitable. Simply put: it pays to promote good corporate governance.

See full Article, in pdf format.