| Investor sentiments are a very crucial issue for any | | | | If the corporate governance is sound, it has a |
| company. If the investor confidence is high, the share | | | | beneficial effect on investors. |
| price of the company soars. If the investor confidence | | | | 1) Good corporate governance aids institutional |
| weakens, the value of the stock plummets. Therefore, | | | | investors get good financial returns. |
| it is crucial for a company to keep its investors in mind | | | | 2) It helps society by taking in social and environmental |
| before taking important decisions and to maintain a | | | | concerns into concern. |
| flawless management quality. | | | | 3) The economy profits from the steady cash flow |
| The recent spate of corporate scandals has sent | | | | that sound corporate governance generates. |
| investor confidence plummeting to an all time low. | | | | How to Boost Investor Confidence through Good |
| Mismanagement in companies like Enron and World | | | | Corporate Governance; |
| Com left the national exchequer poorer by around $80 | | | | The ideal corporate governance is based on sound |
| billion. As recent studies have shown, companies rated | | | | economic and ethical principles. Here are some ways |
| high in good management practices had higher returns | | | | to boost the investor confidence through corporate |
| than those rated low on the same parameters. | | | | governance. |
| Many investors use their savings, including pension | | | | 1) Your investor strategies should be responsible and |
| funds, to purchase shares in a company. They are set | | | | sustainable. |
| to lose a lot in case of financial mismanagement by | | | | 2) If you have formed a board of trustees that is |
| the company. Therefore, the quality of corporate | | | | responsible for investment, then the trustees should be |
| governance is a key issue for them. | | | | screened to see if they could offer clean corporate |
| How Good Corporate Governance Aids Investors; | | | | management. |