On January 20, the Credit Suisse Research Institute published a report entitled “How Corporate Governance Matters”, which explores the connection between sound governance and better business performance.
The report provides new data to support the growing investor interest in governance-related rules and practice, and introduces innovative ways to assess corporate performance, such as the HOLT Governance Scorecard. Moreover, the Credit Suisse Research Institute identifies specific company types and sectors, in which governance can serve as a particularly robust investment strategy instrument. Some of the findings will also be discussed this week during an event on “Technology and Board Governance” hosted by Credit Suisse in Davos.
As corporate governance defines the rights and responsibilities of key decision-makers within an organization, it sets the foundation for business performance and should therefore be among the key criteria for investors. In 2015, significant regulatory efforts to establish sound corporate governance principles across industries were driven internationally by the OECD. In the financial sector, for example, the Basel Committee on Banking Supervision issued guidance on corporate governance, which is considered a significant contributing factor to the safety and soundness of the global banking system. In this context, the Chairman of Credit Suisse Group’s Board of Directors, Urs Rohner, confirms that “robust corporate governance is a must in any industry, and for banks in particular.”