A study into the effects of the ASEAN Corporate Governance Scorecard also showed ranking firms boosted investment by foreign asset managers.
Image: Black Salmon/Shutterstock
Does ranking companies according to corporate governance scores improve their standards? According to new research it does.
A pair of academics looked at the effects of grading companies across Asia in a “Top 50” list, or ASEAN Corporate Governance Scorecard (ACGS), and found that the rankings are more than mere flattery. When they applied a statistical analysis they concluded that inclusion in the table could boost investment by foreign asset managers and provide an incentive to improve governance measures.
According to a study by Pietro Bonetti and Gaizka Ormazabal, of the IESE Business School in Barcelona, a mention on the list a
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda