Corporate Governance Quotient

Corporate governance ratings to evaluate risk

The ability to evaluate and compare companies’ corporate governance structures and practices is increasingly important in equity research and investment decision-making. Corporate governance ratings data provide a practical addition to institutional investors’ arsenal of comparative tools for evaluating portfolio companies.

First introduced in 2002, RiskMetrics Group’s Corporate Governance Quotient (CGQ®) measures the strengths, deficiencies and overall quality of a company’s corporate governance practices and board of directors. CGQ is reliable tool to help analysts, portfolio managers, research directors and others understand a company’s corporate governance structure and practices.

Benefits

• Research and analyze a company’s corporate governance strengths, weaknesses and overall quality
• Develop a corporate governance composite score within a broader model to get a more complete picture at the company, peer group and industry levels
• Create customized ratings and portfolio level benchmarks to help screen for particular governance characteristics.
• Use the underlying data when engaging in discussions with company management
• Incorporate corporate governance into due diligence for mergers and acquisitions

Please contact us for more information on CGQ.