New IPO companies fare worse than index ones in corporate governance: Study

Poor governance has been a drag on returns for firms, finds study

Companies which have recently come out with their initial public offers (IPOs) have worse corporate governance scores than those in key benchmark indices revealed an annual examination of governance standards across companies. 

Recently listed companies scored 54, compared to 58 for the S&P BSE 100 companies and 61 for companies in the S&P Sensex companies, showed the Indian Corporate Governance Scorecard report brought out by governance firm Institutional Investor Advisory Services India Limited (IiAS). The framework was developed in association with Asia’s oldest exchange BSE and the International Finance Corporation (IFC). The initiative had financial support from the government of Japan. 

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