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Is good governance bad for business?

 
 
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adigaskell
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PostPosted: Mon Nov 01, 2010 4:06 pm    Post subject: Is good governance bad for business? Reply with quote

New research suggests that corporate governance may not be all it's cracked up to be. Financial firms with strong shareholders, independent directors and weakened CEOs actually did worse during the global downturn, on average, than firms with fewer checks and balances in place. The study's authors suggest that corporate leaders may actually be more risk-averse than shareholders, and that it could thus be safer for companies to stop trying to rein in their managers.

http://www.economist.com/node/17359354?story_id=17359354
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