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Corporate Governance, ESG Academic Research / 08.01.2020

Proxy adviser’s downgrades cost companies 1% of market value

Evidence demonstrates that investors' behaviours change when the largest proxy advisory firm downgrades public companies' rating on governance ground. Professor Paul M. Guest and PhD student Marco Nerino of King's Business School at King's College London empirically demonstrate that Institutional Shareholder Services' (ISS) announcement of corporate...

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