Kevin LaCroix's post on The D&O Diary yesterday, "The Limitations of Governance Ratings," spurred a flurry of conversation among our senior ratings team. The post discusses the findings of the recent study by Lucian Bebchuk and Assaf Hamdani that questions whether governance ratings can be applied universally to all companies, largely based on concerns about disparate ownership structures.
This is an exciting topic for The Corporate Library, because our ratings have always drawn distinctions between companies with different ownership structures, especially those with controlling shareholders. Read our response to Mr. LaCroix's post here.
