Dunoon Financial is a corporate governance professional and understands the relationships between the stakeholders of a company and a company prescribing a methodology of operations such as rules, systems, procedures, delegations of authority etc that will create a culture and structure enabling results to be quantified, decision makers to be accountable and risks to be managed.
The advantages of committing time and resources needed to improve a company’s corporate governance practices is considered an investment that correlates with the corporate objective of creating shareholder value.
McKinsey and Company found from its Global Investor Opinion Survey in 2002 that:
-
Investors state that they still put corporate governance on a par with financial indicators when evaluating investment decisions.
-
An overwhelming majority of investors are prepared to pay a premium for companies exhibiting high governance standards. Premiums averaged 12-14% in North America and Western Europe; 20-25% in Asia and Latin America; and over 30% in Eastern Europe and Africa.
-
While the relative significance of governance appears to have decreased slightly since 2000, this highlights that (i) many countries have implemented governance-related reforms that have been welcomed by investors, and (ii) more than 60% of investors state that governance considerations might lead them to avoid individual companies with poor governance with a third avoiding countries.
The following websites contain detailed information on the practices and principles of Corporate Governance:
ASX - Principles of Good Corporate Governance and Best Practice Recommendations
IFSA - Blue Book (Corporate Governance: A Guide for Fund Managers and Corporations)
For further information regarding the implementation of good corporate governance practices into your organisation please contact Peter Dunoon on 02 9091 6980.