An analytical handbook for
investors, managers, directors and stakeholders
Comprehensive in scope and
cross-disciplinary in analysis, Governance and Risk examines the problem of corporate
governance from a wide variety of perspectives. The authors begin with the premise -
correctly in my view - that corporate governance is, at is core, an important risk
factor for any corporation. Through this conceptual prism, they employ economic, legal and
social analyses - and draw on examples from 12 jurisdictions - to provide fresh
insight into how we should best understand and govern the inherently conflicting interests
that comprise the modern corporation. Anyone seeking a rigorous analysis of these issues
- from directors, managers and lawyers to shareholders, corporate and community
activists - should include this volume in their reading. It is an important addition to
the corporate governance literature in this post-Enron age. Ira Millstein is a
senior partner in the international law firm of Weil, Gotshal & Manges LLP
This is a courageous and
successful effort to classify what has never before been analyzed and presented in such a
comprehensible manner. Robert A.G. Monk, Principal, LENS Asset Management
Governance and Risk is
an excellent piece of work. It is a comprehensive and carefully written manual that will
be an invaluable source of information for managers and investors. It deserves careful
study by anyone with an interest in the management of firms. It should make a significant
contribution to the improvement of corporate governance of corporations around the world.
Colin P. Mayer, Professor, Said Business School, University of Oxford
I have found Governance
and Risk to be one of the most comprehensive surveys of the field. It is an excellent
reference work.
J. Mark Mobius, PhD, President, Templeton Emerging Markets Fund, Inc.
This is an important, timely
book which brings much needed rigour and discipline to the analysis of corporate
governance practices. If you are looking for a reliable guide through the confusing maze
of corporate governance, this book is an excellent place to start.?Paul Coombes, Director,
Corporate Governance Practice, McKinsey & Company, Inc.
Effective corporate
governance has long been viewed as essential for healthy capital markets. Careless and
inefficient governance practices, however, have thrust the governance debate from the
shadows to the forefront, and corporate governance can now be recognized as a stand-alone
risk factor.
Many market participants now
question whether true self-governance is possible or even realistic in todays era of
razor-thin profit margins and bloated executive paychecks.
This all-encompassing book
compiled and edited by George Dallas, managing director and global practice leader of
Standard & Poors Governance Services unit. It includes contributions by senior members
of Standard & Poors Governance Services group, as well as from other experts in the
area of corporate governance. The book offers the following benefits:
- Provides a wide-ranging
discussion of methodologies and criteria relating to corporate governance analysis;
- Brings together diverse
country environments in a common analytical framework;
- Seamlessly links up-to-date
conceptual and theoretical thinking about governance to practical performance issues;
- Explores broader themes of
governance-sustainable development, directors and officers insurance, behavioral aspects,
and approaches to governance in managed funds and governments.
Highly publicized collapses
in governance have replaced calm and complacency with vigilance and even stridence, often
obscuring valuable and necessary aspects of governance that are long-overdue for
discussion and review.
Governance and Risk presents
a balanced and rational approach to one of todays most emotional topics. It also outlines
an analytical model for both evaluating the governance practices of individual
corporations and protecting yourself or your organization from the effects of incomplete,
inaccurate, and potentially misguided practices.
An Authoritative Global
Framework for Understanding and Benchmarking Risks Related to a Companys Governance
Policies and Practices
As each new corporate
governance debacle dominates world headlines, demands for strengthened regulatory
oversight increase in both frequency and volume. Still, the fact remains that the most
effective corporate oversight begins in the corner offices and boardrooms of the
corporations themselves.
The Standard & Poors
Handbook of Governance & Risk addresses all aspects of this vital issue. Combining the
knowledge and expertise of Standard & Poors with incisive commentary from leading
international contributors, this all-in-one book provides stakeholders and decision-makers
with:
- An analytical framework for
examining and benchmarking governance standards in individual corporations
- Insights into the governance
impact and importance of ownership structure, shareholder rights, stakeholder relations,
transparency, and an effective board to both internal and external governance
- Bases for evaluating and
comparing governance practices across companies, countries, and cultures
Capital markets require
trust and integrity to function effectively, yet these two qualities more than any other
are called into question with each new report of corporate malfeasance and greed. The
Standard & Poors Handbook of Governance & Risk provides a framework for investors
and other stakeholders to help assess the extent to which they should give global
corporations their trust--and their money.
The corporate governance
debate continues to grow in prominence, as the combination of corrupt governance practices
in certain cases, and merely substandard governance in less extreme situations, is taking
its toll. This book is an analytical handbook for investors, stakeholders, and other
analysts wishing to achieve a better practical understanding of key corporate governance
issues in individual companies, (and) more effectively identify and manage governance
related risks.
From the Preface
Effective corporate
governance has long been viewed as essential for healthy capital markets. Careless and
corrupt governance practices, however, have thrust the governance debate from the shadows
to the forefront, and corporate governance can now be recognized as a stand-alone risk
factor. Many market participants now question whether true self-governance is possible or
even realistic in todays era of razor-thin profit margins and bloated executive paychecks.
The Standard & Poors
Handbook of Governance & Risk provides a solid conceptual grounding on the principal
themes of governance in todays global corporate arena. Straightforward and authoritative,
with compelling insights into todays key micro (internal) and macro (external) corporate
governance issues, this all-encompassing book:
- Provides a wide-ranging
discussion of methodologies and criteria relating to corporate governance analysis
- Brings together diverse
country environments in a common analytical framework
- Seamlessly links up-to-date
conceptual and theoretical thinking about governance to practical performance issues
- Explores broader themes of
governance--sustainable development, directors and officers insurance, behavioral aspects,
and approaches to governance in managed funds and governments.
Highly publicized collapses
in governance have replaced calm and complacency with vigilance and even stridence, often
obscuring valuable and necessary aspects of governance that are long-overdue for
discussion and review. The Standard & Poors Handbook of Governance & Risk presents
a balanced and rational approach to one of todays most emotional topics, and outlines an
analytical model for both evaluating the governance practices of individual corporations
and protecting yourself or your organization from the effects of incomplete, inaccurate,
and potentially misguiding practices.
Author Biography
George S. Dallas is managing
director and global practice leader of Standard & Poors Governance Services unit. This
unit provides corporate governance evaluations on companies in developed and developing
markets around the world. Dallas has been actively involved with the development of
Standard & Poors corporate governance analytical criteria and their application in
markets throughout the world. His work and analysis have appeared in numerous books as
well as professional journals.
594 pages