Tag Archives: corporate governance

Jul 9, 2020

Wirecard’s Chronically Low ESG Scores Reflected Governance Challenges

On June 25, 2020, the German digital payment company Wirecard AG filed for insolvency following reports that over USD 2 billion in cash assets went missing. Wirecard’s stock has gone down 90% since the initial announcement, and the company’s lenders now face deep losses. While the S&P ESG Index Series does not include Wirecard, the…

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Jun 6, 2019

JPX/S&P CAPEX & Human Capital Index: Linking CAPEX and Human Capital to Investment Opportunity

Human capital, physical capital, and technology have been widely recognized as a fundamental source of economic growth.[1] Dating back to the 1960s and early 1970s, when we saw a rapid increase in educated workers, facilities, and technological catch-up, Japan’s “economic miracle” emerged along with impressive GDP and per capita output growth.[2] Nowadays, these factors are…

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Apr 16, 2018

Exploring the G in ESG: The Relationship Between Good Corporate Governance and Stock Performance – Part 2

Year-to-date, Facebook (FB) was down 7.13% as of April 12, 2018, compared to its 53% total return in 2017. What started as a data breach issue has expanded to encompass management structure, procedures, and safeguard concerns—issues that are all related to corporate governance. Market participants have a tendency to only care about corporate governance when…

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Mar 14, 2018

Exploring the G in ESG: Governance in Greater Detail – Part I

There is increasing evidence of the link between ESG and financial outperformance as better data quality, standardized data, longer data history, and heightened interest in assessing the materiality of ESG drives continued research. However, there is already substantial empirical evidence to suggest that the “G” aspect of ESG ultimately yields better corporate returns. Governance data,…

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