UK - Corporate governance directly affects shareholder ret-urns, a new study in the US shows.
Institutional Shareholder Services – the National Association of Pension Funds’ US partner in the corporate governance ad-vice and proxy voting service RREV – commissioned the res-earch to measure how returns reflect how firms are run.
The study – carried out by Georgia State University – found a direct correlation bet-ween governance with shareholder returns, profitability, risk and dividend policy.
Study author Lawrence Brown said weaker governance performance meant less profitability and higher volatility.
He said: “The average difference in annualised returns between bottom decile and top decile companies was 11.9% over the preceding five-year period. Board composition proved to be the most important factor.”
Research found that top corporate governance performers had a three-year total shareholder return of 6.5% compared to -0.2% for those ranked in the bottom decile.
MPs failed to place legislation into the Financial Guidance and Claims bill that would have made pension guidance default, which Just Group director Stephen Lowe said left a "bitter taste".
Aegon has called for the government to double the tax exemption on employer-arranged pension advice, up from £500 to £1,000.
Institutional investor confidence in Europe rose by 8.9 points in April with each region showing growing appetite for risk, according to State Street Global Exchange.
It has again been suggested self-employed workers could enjoy pension provision through the tax return process. James Phillips explores the latest proposals.