 Do institutional shareholder services (ISS) corporate governance ratings reflect a company's operating performance?Ruth W. Epps and Sandra J. Cereola CRITICAL PERSPECTIVES ON ACCOUNTING, 2008, vol. 19, issue 8, 1135-1148 Abstract: Little is known about the relation between the actual governance rating received by a firm and the firm's performance. In this study, we examine the relation between the actual corporate governance rating received by a firm and the firm's performance during the years 2002–2004. We use the institutional shareholder services (ISS) corporate governance quotient (CGQ) rating of a firm's corporate governance structure and analyze this rating in relation to the firm's operating performance. We compare the institutional shareholder services’ CGQ rating to two measures of the firm's operating performance, return on assets (ROA) and return on equity (ROE). Based upon our results, we do not find statistical evidence suggesting that the firms’ operating performance is related to the firms’ ISS corporate governance rating. Keywords: Corporate governance; Firm operating performance; Governance rating; Return on assets; Return on equity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:crpeac:v:19:y:2008:i:8:p:1135-1148 DOI: 10.1016/j.cpa.2007.06.007 Access Statistics for this article CRITICAL PERSPECTIVES ON ACCOUNTING is currently edited by Marcia Annisette, Christine Cooper and Yves Gendron More articles in CRITICAL PERSPECTIVES ON ACCOUNTING from Elsevier |
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