Strong Corporate Governance Boosts Market Value of Italian Financial Institutions
The article examines how good corporate governance affects the value of financial institutions in Italy. By using a Corporate Governance Index, the researchers evaluated the governance quality of these companies in areas like Board, Compensation, Shareholders’ and Stakeholders’ Rights, and Disclosure. They found that there is a positive link between strong corporate governance and better performance, suggesting that investing in effective governance systems can benefit financial institutions. This means that improving corporate governance can help financial institutions grow and succeed.