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Value and governance

The UK Corporate Governance Code’s impact on financial performance has been largely untested until now. Research by Grant Thornton correlates strong corporate governance with financial outperformance. Sarah Bell explains the findings.

Governance, the system by which companies are directed and controlled and the decision-making environment it frames creates the rules of engagement or trust that exists between the organisation and its stakeholders. This trust is critical to how efficiently an organisation is run. Governance guidance for FTSE and AIM companies, and large privately listed companies, has evolved in recent years. So, a key question arising is: does strong governance lead to better business performance?

At Grant Thornton, we have just published new research, using a decade of data, which looks at the applied governance practices of more than 500 FTSE 350 companies in line with the UK Code.

About the article

Read the full article in the Corporate Financier September 2020 edition. Access this magazine as well as our extensive archive brought to you by the ICAEW Corporate Finance Faculty.