October 2025
Intermediate to advanced
528 pages
17h 42m
English
Governance ratings is a relatively new industry in which consulting companies develop quantitative metrics to measure the effectiveness of a company’s governance system. The inputs in these models are based on governance attributes that we have discussed throughout this book, including the structure of the board, elements of the executive compensation plan, antitakeover provisions, and other features. Academic researchers have also developed indices that rely on similar inputs. In the case of environmental, social, and governance (ESG) ratings, the variables relate to a company’s impact on environmental, societal, and workforce-related metrics, in addition to their governance-related attributes. The question ...
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