Recent academic research shows that companies with good corporate governance have higher return on equity than other companies.

Question

Quizplus · Accepted Answer

The statement is true. Several studies have found a positive correlation between good corporate governance and higher financial performance, including a higher return on equity. This is because good governance practices, such as transparent communication, accountability, and effective decision-making processes, can lead to better management of risks and opportunities, increased investor confidence, and ultimately, better financial results.

Recent Academic Research Shows That Companies with Good Corporate Governance