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Article: Changing the nature of governance to create value.
- Article from:
- C.D. Howe Institute Commentary
- Article date:
- November 1, 2003
- Author:
CopyrightCOPYRIGHT 2003 C.D. Howe Research Institute. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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It is an inconvenient fact that the relationship between good corporate governance and performance has turned out to be so elusive. Clearly, because many factors influence a company's performance, it is difficult to isolate statistically the role and contribution of governance. Given this fact what does good governance actually mean, and how does good governance contribute to the stock performance of public companies?
We attempt to answer these two questions by
* contrasting three different forms of corporate governance: fiduciary governance, shareholders'-rights governance, and what we call value-creating governance;
* surveying past studies ...