Institutional EYE

Commentary on Corporate Governance Issues

Good corporate governance practices create long term value

A recent study by IFC, BSE, and IiAS shows that companies with good corporate governance standards created better shareholder wealth. Further, the study concluded that investors have a strong role to play in framing a company’s corporate governance policies and practices. Discerning investors intuitively understand the value of good corporate governance. It results in an optimal balance in the agendas of management, promoters, and other stakeholders in everyday operations, and in taking material decisions. More importantly, good corporate governance generates trust, and predictability of behaviour (or, at least, no serious surprises), which provides significant comfort to investors. But gove

How cross-border listing can truly benefit Indian investors

The expert committee for cross listing submitted its report to SEBI in December. Cross-listing is when equity shares of companies incorporated in a country (India) are listed directly on foreign stock exchanges or of companies incorporated outside India, on Indian stock exchanges. While Indian companies want to list off-shore, Indian investors interests are better served if it encourages companies incorporated outside India to list on Indian exchanges. There is no reason why Unilever or Nestle or P&G or Cummins should not list in India – some of them are, after-all, transferring business to their unlisted Indian subsidiaries – and in doing so, choosing the Indian consumers over its investors

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