Corporate governance still a concern in 2007

Corporate governance is likely to remain an area of relevance and concern in 2007, according to a recent report by Standard & Poor’s.
“While the numerous corporate governance reforms, laws, and code implemented earlier in the decade in markets around the world have in many ways improved governance standards globally, governance issues continue to present challenges to investors in complex ways that extend beyond regulatory purview,” Standard & Poor’s managing director George Dallas says in a statement.
Dallas observes that within the regulatory context itself, there is an open and unresolved public debate about the most effective regulatory framework to address corporate governance-related risks and abuses in financial markets around the world.
“Introspection within the U.S. about the effectiveness of its more legalistic approach to governance regulation features prominently in this discussion,” Dallas notes. “Europe’s more flexible ‘comply or explain’ approach offer[s] a more flexible, but possibly weaker, alternative.”
Standard & Poor’s has published a series of articles on the subject, which are relevant to risk managers and insurers offering D&O insurance. Taken together, the articles make up a special report that includes the following titles:
“Corporate Governance–Still An Area Of Investor And Public Policy Concern”
“The Current State Of Corporate Governance: A Standard & Poor’s Roundtable
Discussion”
“Can Sustainability/Corporate Citizenship Become An Important Investment
Factor?”
“Credit FAQ: For European Utilities, Climate Change Policies Are More Than
A Lot Of Hot Air”
“The Growing Role Of Corporate Governance In Credit Ratings” and
“Equity Insight: How Corporate Governance Factors Into Stock Analysis”