Reaping the rewards of responsibility
Investors are likely to place a premium on good corporate governance in the future, with studies showing that companies with better corporate governance also make higher profits.
19 February 2009
A 2007 Investment Journal study on companies listed on the JSE stated that those with good corporate governance yielded higher share price returns.
In January this year The Guardian in the United Kingdom published similar findings. According to the Association of British Insurers, companies with the best corporate governance produce returns of up to 18% higher over a period of four years than companies with poor governance structures.
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