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February 2010

The value of corporate governance

This month's theme is the value of corporate governance. Does better corporate governance lead to more shareholder value? Yes, according to one of the most influential academic papers of the last decade (Gompers, Ishii & Metrick, 2003) which is reviewed here. This month’s articles show that better corporate governance is often valuable for investors and policy makers in both developed and emerging markets.

Suggestions of articles to be reviewed can be emailed to the RI Digest team, who will also be happy to answer any questions. Emails can be sent to  This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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1 Strong shareowner rights lead to portfolio outperformance.
2 Revisiting a landmark study on shareholder rights and firm value: New research finds that only a number of corporate governance provisions really matter.
3 Weak shareholder rights were a factor in the Asian financial crisis
4 Better corporate governance leads to increased investor confidence.