FTFM It is a truth almost universally acknowledged that a well-managed company will perform better, or at least more consistently, for its shareholders than a badly managed company. The challenge is to recognise the difference.
In developed markets, investors have a host of ways of distinguishing good from bad, but the starting point is high, as standards for corporate governance are well established and respected. In emerging markets, the transparency that is a fundamental part of good corporate governance is often lacking, but it would offer investors a significant advantage to be able to recognise which companies are making an effort.
