CGA-Canada supports, through a gift agreement, research conducted by the CGA-AGRC at the Telfer School of Management. The grant is provided for the year 2012-13 to fund research activities in the area of corporate governance, risk management, business and finance.
- July 2014
Firms with more effective boards are more likely to disclose climate change risks
Effective corporate governance positively influences the likelihood and quality of voluntary climate change disclosures as it ensures a greater alignment of directors’ and shareholders’ interests. The public disclosure of greenhouse gas emissions requires an operational commitment to track emissions and can be seen as a first step towards the recognition and reduction of the firms’ carbon footprint.
- February 2014
Board characteristics, rather than governance indices, are more successful in predicting the costs of financing of Canadian firms
Individual characteristics of corporate boards are more effective than governance indices in gauging the governance quality of Canadian publicly traded companies, as they are better able to explain the costs of financing of those firms. The higher quality governance is associated with a firm’s reduced exposure to market risk and should promote lower costs of financing.
- July 2013
Higher reported enterprise risks are not predictive of weaker business performance
The level of disclosed risks does not appear to predict a company’s business performance. While firm performance changed radically during the 2008 financial crisis and economic recession, only minor increases in the disclosed risk exposure, risk consequences and risk management strategies were identified in companies’ annual reports published in 2007 and 2008.
- January 2013
The effect of the financial crisis on enterprise risk management disclosures
The 2008 financial crisis had little impact on the risk disclosures of Canadian firms provided around the same period. Investors examining risk disclosures of major non-financial Canadian firms in 2008 would have been at a loss to find signs of a financial crisis. The research findings highlight the need to pay closer attention to the quality of risk disclosures.
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