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Do you agree with the statement that good corporate governance will increase the share price for a company?

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Question added by Nitin Gupta, ACA , FP&A , Rockwell Automation
Date Posted: 2013/11/19
Deleted user
by Deleted user

Yes , I do agree with the statement that good corporate governance will increase the share price for a company.

 

 

Mohammed Salim Allana
by Mohammed Salim Allana , Compliance and Assurance Manager , United Arab Bank

Yes, the well managed company with excellent corporate governance and risk controls wins reputation and customer loyalty.

The results reflects in their share prices.

Aziz ur Rehman ur Rehman
by Aziz ur Rehman ur Rehman , Assistant Manager Finance , Central Power Puchasing Agency (CPPA)

Yes. Qualitative factors also consider for share price fluctuation. 

Market price of shares will be reflected the company is managing the affairs well and the corporate governance will be monitor by governing aauthority. if any penelty published in financail statments then create bad impact  who are intrested to invest in that company.  we can say that corporate governess directly Proportional to Price of the share.   

Khalid Noor
by Khalid Noor , Accounting Manager , FedEx

Not in a short run. In long run it ll definitely do as good corporate governance increase the investor's confidence.

Muhammad Zaid Shams
by Muhammad Zaid Shams , MANAGEMENT ACCOUNTANT

Yes, a good corporate governance assures that a company is well directed and controlled so in result will create a better image of the company and hence will effect the share price.

Amr Ebeid
by Amr Ebeid , Financial controller , Majan University College SAOG www.majancollege.edu.om

Yes.Corporate governance improves the quality of future profits and cash flows and hence the share price.

Mohammad  Rizwan
by Mohammad Rizwan , Cost Accountant , RAYSUT CEMENT COMPNAY SAOG

Yes these things increase the market price of share because buyer belive on that if it shows that in futere share price of market going to be high then defenetly the statement increase the prices.

Rahul Sharma
by Rahul Sharma , Project Head & Finance Manager , Rays Power Private Limited

Yes, A good corporate governance always increases the price of stock/shares,as it always increases the trust level of the investors/shareholders.

pravitha nottath
by pravitha nottath , Customer Service Representative , Tanfeeth enbd.group

yes a good corporate governence will bring the customer loyality and reduce the risks. thats why it will capture the current market competition. it will bring the companies to good quality factors and alsoreflect it in share price fluctuation,

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Imran Mohammad
by Imran Mohammad , Deputy Manager , Karvy Data Management Services Ltd

Share price increases when company get better performance results and good corporate governance will lead to good company results.

 

Tegegne Abrham
by Tegegne Abrham , General Manager , MM BEDDING INDUSTRIES PLC

I am fearing to answer the direct r/ship and effect between CG and mkt price of shares. Because CG is a recent history in the stock exchange administration and it issued after (during) the world has faced a greatest recession in its history. Before CG the stock market was performing relatively genuinely. The mkt was driven by demand and supply of stocks. After the institutional investors started to involve in the market the market price of stock started to be distorted. This is mainly due to the nature of the institutions. Since this instutions intention is a short term once holding of the asset is to earn the maximum profit as much as they can. For these reason they used their knowledge and experience to distract the market. Gov't s that understand this like US and its allied gov'ts issue a new law that incorporated CG which is well know as Subanoes oxlelay convention (sorry if I wrote it correctly) in to their stock market regulation during George Bush time ( I think in2002 after Enrol crisis). The detail law has not survived the world from crises. The whole world economic conditions fall as the result of fat big cats act. For this and other reason I would not be a position to say CG has an impact on market price of shares. It can be a means to way but not an end to it.

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