Putting a value on board governance
From: The McKinsey Quarterly(Issue 4.)
Publisher: McKinsey & Company, Inc.
Document Type: Article
Length: 2,025 words
Companies must realize the significance of fostering good governance in the workplace, as it may lead to significant increase in shareholder value. An analysis involving 100 investors, CEOs and senior executives revealed that 16% of the respondents are interested in investing more in companies that exhibit good governance. Such is particularly true for investors and companies suffering from low turnover ratios. Survey results further showed that good corporate governance does not only create long-term improvements, but actually lead to increased stock prices and reduced risks as well.