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 Corporate Governance

Corporate Governance refers to the policies by which companies manage their affairs.  Light Green Advisors (LGA) believes that corporate governance is an important facet of corporate responsibility and long term profitability of stock market investments. As a responsible investor, LGA examines corporate governance issues such as audit committee independence and executive compensation and votes proxies on corporate governance issues.

LGA also views companies that repeatedly revise their earnings estimates as irresponsible since they abuse the implicit trust that investors such as LGA have placed in the management of those public companies.

Research by leading business professors has verified that companies that confer greater rights to shareholders deliver better returns to shareholders over time.

For more information on why LGA believes responsible corporate governance is positively related to the creation and safeguarding of shareholder value, please review this paper prepared by top academics at Harvard, Stanford and Wharton.

http://finance.wharton.upenn.edu/~metrick/gov.pdf
 

If you are interested in exploring corporate governance issues in more detail, we encourage you to visit the web-site of Robert Monks, the grandfather of corporate governance activism in the United States, and one of the progenitors of good governance practice as defined in the United Kingdom as well.  To visit his web-site, click here.