Corporate governance 2003: Good practice boosts performance

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Corporate governance 2003: Good practice boosts performance

Results of Euromoney's corporate governance poll suggest that the efforts a company makes to ensure appropriate practices are reflected in its share price.

Full Results: Emerging Markets | Developed Markets | By Country | By Sector

Methodology

THE COLLAPSE OF Enron has forced investors to accept that disasters caused by poor corporate governance aren't the preserve of developing markets. It has also triggered a flood of legislative and regulatory changes and codes of conduct across the developed and emerging worlds to improve systems for ensuring that public companies are run properly in shareholders' interests.

But will such codes really improve matters? Will investors accept their share of responsibility for ensuring good governance and will companies that do the right things benefit in the capital markets?

As a contribution, Euromoney offers its own survey of corporate governance standards at leading emerging-market companies, benchmarked against some leading names from the developed world. While the emerging markets have been further behind in corporate governance practice they've been a step ahead in terms of motivation since the crashes of the late 1990s and early 2000s in Asia, Russia and Latin America led to a flight of portfolio capital. Their assumption has been that if they tick enough of the corporate governance boxes, investors will be attracted back into their stock.

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