(ANSA) – MILAN, APRIL 27 – The crisis due to the pandemic emergency has hit all Italian companies, but those that have changed their corporate governance in a more advanced and modern perspective have limited the damage, showing superior performance. In fact, in 2020, companies whose governance has evolved experienced a decline in turnover of 6.8%, compared to 9.1% of companies that experienced a deterioration in their governance.
This was revealed in the 2022 Report of the Corporate Governance Lab of SDA Bocconi and produced with the contribution of PwC TLS, Banca Generali and NUO and which analyzed the 5,398 Italian companies with turnover exceeding 50 million euros, monitoring their governance and ownership structure in the two-year period 2018-2020.
The corporate governance index (ICG) is calculated on the basis of five parameters and according to the research in 2020 the diversity of the Board of Directors increased in 229 companies, the Board of Directors was introduced and opened to external directors in 79 and 182 cases respectively , while 377 companies have separated the roles of president and chief executive officer, and 251 have moved to individual leadership, bringing companies with a growing ICG to 771, or 14% of the total.
This, according to the research, led companies with a loss compared to 2019 up by 7.1% among those worsening governance index, compared to 5.2% of companies with stable index and 4.4% of those improving. According to the research, an additional index point would lead to an increase of as much as 14.9% in the probability of paying dividends, while it is accompanied by a 7.4% decrease in the need to resort to state support measures.
Furthermore, companies with higher ICG have a 2.22% chance of being present in low political risk countries but only 0.86% in high political risk ones, while for those with lower ICG index the opposite is true. : they have a 1.27% chance of investing in countries with a lower risk, compared to an almost double chance (2.44%) of being in more problematic countries. Finally, 67% of companies with high ICG have a formalized ESG strategy, compared to 58% of companies with low ICG. (HANDLE).
Source: Ansa
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