A recent study by McKinsey & Co.found that investors assign a higher value to firms that exhibit ________ corporate governance standards and are likely to ________ ethical constraints.
A) high;not obey
B) high;obey
C) low;not obey
D) low;obey

Question

Quizplus · Accepted Answer

The question refers to the value that investors assign to firms based on their corporate governance standards and ethical behavior. A firm with high corporate governance standards is likely to obey ethical constraints, and thus, option B, where investors assign a higher value to firms with high corporate governance standards and are likely to obey ethical constraints, is the best choice. Options A, C, and D are incorrect because they do not reflect the positive correlation between high corporate governance standards and ethical behavior, which is a crucial factor that investors consider in valuing firms.

A Recent Study by McKinsey & Co