In today’s briefing:
- Why Are Companies with High Corporate Governance Practices Ratings More Profitable?
Why Are Companies with High Corporate Governance Practices Ratings More Profitable?
- Companies with higher ratings for Corporate Governance Practices (Board Practices and Key Actions) tend to have significantly higher profitability, market capitalization and valuations.
- Foreign ownership has the highest correlation with the Metrical CG score, suggesting that years of overseas investor engagement have improved the companies’ corporate governance practices and profitability.
- The pace of efforts varies with criteria of Corporate Governance Practices. Companies with Metrical CG scores of over 70% are ahead in % independent directors and % female board members.