Ad Code

Ranking corporate governance initiatives

Ranking corporate governance initiatives

There is little evidence concerning which area s of corporate governance is important to share holders. Based on the results of a survey, it has been found that for institutional investors:
The appointment of non-executive directors is the most important and effective corporate governance initiative.

Second in place came the splitting of the chief executives and chairman role.
Appointment of audit committee.
Removing three year contracts for executive directors
Company directors who produce misleading information must be personally liable
Establishment of remuneration committee.
From an agency theory perspective, these ways can help control the agents and are therefore likely to bee seen as an important by shareholder.
Reactions

Post a Comment

0 Comments