Thursday, September 14, 2006
The Value of Periodic Corporate Governance Performance Assessments
Corporations measure their performance all the time. In addition to public announcements of their financial performance as required by government regulations, corporations perform a wide-range of internal and external assessments of performance, from brand value analyses and product comparisons, to investor perception studies or customer satisfaction surveys. All of these analyses are important in helping a corporation manage its business, particularly with public perception and positioning itself in relation to peer companies. Due to its importance in driving investor and public perception, corporate issuers would also be well served to perform periodic assessments of corporate governance performance.
Why Assess Corporate Governance?
ISS' recent Global Investor study found that 70% of institutional investors describe the corporate governance of their portfolio companies as important. With this level of investor interest, demonstrating good corporate governance should be a priority for all issuers. Assessments, either internal or by third parties, can be a useful tool in this regard.
See full Article.