In today’s briefing:
- Companies with High Corporate Governance Practices Have High ROE, but Not Vice Versa
Companies with High Corporate Governance Practices Have High ROE, but Not Vice Versa
- Companies in the 0% to 8% ROE group have low stock valuations and are in trouble because they are unable to step into value-creating management.
- Companies in this group, which includes many prime market listed companies, have done what is required by Corporate Governance Code, but could not take action to increase their ROE.
- The lack of significant differences in corporate governance practices for group with ROEs above 10% is due to foreign ownership not being significantly differentiated from other groups.
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