In today’s briefing:
- Companies with over 50% Independent Directors Have High Profitability and Stock Valuations
Companies with over 50% Independent Directors Have High Profitability and Stock Valuations
- While the number of companies with majority of independent directors is still small (15.7% of the Metrical Universe as of September 2023), the number of those companies is steadily increasing.
- The group of companies with over 50% independent director are superior in market capitalization, ratio of foreign shareholders, ratio of female board members, ROE, ROA, Tobin’s Q, and Metrical Score.
- Given that the presence of overseas investors remains high, profitability, share price valuation, and corporate governance practices such as independent director ratios will continue to improve in the future.
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