7/31/2019 Survey Says... Corporate Governance Matters to Investors in Emerging Market Companies

1/16

Cj}{j}gye Djxe}bgbce Ogyye}s yj Fbxesyj}s fb Eoe}dfbd Og}aey Cjo{gbfes

MvXfa}gogifyvgAngbbggbi]jogb\v`g

Hfbgbcfg` c}fses ngxe g tgv j m}fbdfbd cj}{j}gye djxe}bgbce yj yne j}ed}jubi" Hj} fb/

ye}esyei {g}yfes tgbyfbd yj abjt oj}e, yne}e fs gb fo{}essfxe mjiv j }eseg}cn yngy `jjas

gy cjo{gbfes gbi yne cjbbecyfjb meyteeb sy}jbd djxe}bgbce gbi meyye} {e}j}ogbce"

Njtexe}, yne e~fsyfbd `fye}gyu}e jb`v djes sj g}" Fy ijes bjy `jja gy tneyne} yne `exe` gbi

wug`fyv j }o/`exe` cj}{j}gye djxe}bgbce {`gvs g }j`e gs `g}de/scg`e fbxesyj}s cjbsfie}

fbxesyoeby iecfsfjbs fb eoe}dfbd og}aeys"

Yfs syuiv j eoe}dfbd og}aey fbxesyj}s sneis `fdny jb ynfs fssue gbi }exeg`s yngy eoe}dfbd

og}aey fbxesyj}s cg}e iee{`v gmjuy cj}{j}gye djxe}bgbce"

Ye bifbds ngxe sfdbfcgby fo{`fcgyfjbs, bjy jb`v j} yne eoe}dfbd og}aeys musfbess gbi

bgbce cjooubfyv, muy j} {j`fcv ogae}s, gcgieofcs, yne oeifg, gs te`` gs j} iexe`j{/

oeby bgbce fbsyfyuyfjbs jcusei jb susygfbgm`e ecjbjofc iexe`j{oeby fb ynese cjuby}fes"

Gmjuy yne eoe}dfbdoG}aey fbxesyj} su}xe

Ytebyv/bfbe}es{jbiebys

cu``eih}jogyjyg`ubfxe}jh7;;;eoe}dfbdog}aefbxesyoeby}os"

]es{jbiebysfbc uieiiecfsfjb/ogae}sgyfbsyfyuyfjbg`fbxesyoeby}os{}fxgyeewufyvhubineidehubis{ebsfjb{`gbsgbifbxesyoebygixfsj}s"

]es{jbiebysfbc`uiei}fbxesyfbdfb{um`fc`v/ne`icjo{gbfesfbjbej}oj}eoe}dfbdog}aeys"

Ynefbye}xfetstfynfbxesyoebyiecfsfjbogate}ejhh/yne/}ecj}igbite}ecjbiucyeiyn}judnhgce/yj/hgcegbiye`e{njfbye}xfetsfbBetVj}agb@jbijb"

Fbye}xfetsyjja{`gcefbG{}f`Ogv=;7;"

Su}xev Sgvs

aev hfbifbds4% Mjg}i Mgsei

7/31/2019 Survey Says... Corporate Governance Matters to Investors in Emerging Market Companies

6/16

8pSu}xevSgvsCj}{j}gyeDjxe}bgbceOgyye}syjFbxesyj}sfbEoe}dfbdOg}aeyCjo{gbfes

aev syuiv hfbifbds

Yneaevbifbdsjhynfssyuivhg``fbyjytjcgyedj}fespSu}xevSgvsCj}{j}gyeDjxe}bgbceOgyye}syjFbxesyj}sfbEoe}dfbdOg}aeyCjo{gbfes

yGm`e 7" yne fbxesyoeby {}eofuo hj} djji djxe}bGbce fb eoe}dfbd oG}aeys

sg g =6 g /g

{g t gt g

Ov}otju`i{gvg`g}de}djxe}bgbce{}eofuohj}eoe}dfbdog}aeycjo{gbfesyngbhj}iexe`j{eiog}aeycjo{gbfes 7;;%

Ov}otju`i{gvg{}eofuojhgy`egsy7;{e}cebyhj}djjidjxe}bgbcefbgbeoe}dfbdog}aeycjo{gbv 55%

Ov}otju`i{gvg{}eofuojhgy`egsy=;{e}cebyhj}djjidjxe}bgbcefbgbeoe}dfbdog}aeycjo{gbv 3>%

Ov}ocjbsfie}sdjxe}bgbcegyn}esnj`ihj}gbeoe}dfbdog}aeyfbxesyoebyiecfsfjbgbihj}njtoucnjhg{}eofuotetju imetf``fbdyj{gv 97%

eoe}dfbd oG}aey fbxesyoebys xe}sus iexe`j{ei oG}aey

fbxesyoebys< G cj}{j}Gye djxe}bGbce cjo{G}fsjb

Fbxesyj}ssu}xeveisgfiyne}ete}eifhhe}ebcesfbynetgviexe`j{eiog}aeysfbxesyj}s

ynfbagmjuycj}{j}gyedjxe}bgbcecjo{g}eiyjnjtynevg{{}jgcnynefssue"Ne}e

g}esjoenfdn`fdnys {e}ceby }es{jbiei yngy ynev tju`i {gv gy `egsy =; {e}ceby oj}e j}

sng}es fb sucn g cjo{gbv, sjoe et suddesyei yngy tju`i {gv exeb oj}ec`jse}

yj g 9; {e}ceby {}eofuo"

7/31/2019 Survey Says... Corporate Governance Matters to Investors in Emerging Market Companies

9/16

Su}xevSgvsCj}{j}gyeDjxe}bgbceOgyye}syjFbxesyj}sfbEoe}dfbdOg}aeyCjo{gbfesp6

Ye cjomfbgyfjb j g yn}esnj`i eecy gbi yneb g nfdne} {}eofuo fb eoe}dfbd

og}aeys }e`gyfxe yj oj}e iexe`j{ei og}aeys }gfses fbye}esyfbd wuesyfjbs gmjuy

yne fo{gcy j djxe}bgbce" F ynfs fs gb gccu}gye iesc}f{yfjb, yneb yne j``jtfbd

d}g{ns .Hfdu}e 5, [gbe`s G yj C& {}jxfie g xfet j yne fo{gcy j djxe}bgbce"

Yfs xfsug` ie{fcyfjb j yne fo{gcy j djxe}bgbce snjts fys fo{j}ygbce gbi

j{ebs u{ g}egs yngy snju`i me e~{`j}ei u}yne}" Hj} e~go{`e, njt g} tju`i}os beei yj dj fb fo{}jxfbd djxe}bgbce mej}e fbxesyj}s tju`i me tf``fbd yj

fbxesy: Tngy ieye}ofbes ynese yn}esnj`is: Tngy g}e yne aev cj}{j}gye djxe}/

bgbce gyy}fmuyes yngy tju`i fbuebce yne iecfsfjb:

hfdu}e 5" fo{}jxei cj}{j}Gye djxe}bGbce fo{Gcy jb {}eofG

3" eoe}dfbd oG}aey fbxesyj}s me`fexe ynGy meyye}hf}o/`exe` djxe}bGbce cGb oGae u{ hj} cjuby}v

TeGabesses fb cj}{j}Gye djxe}bGbce

Oj}e yngb 9; {e}ceby j yne fbxesyj}s su}xevei sgfi yngy te``/djxe}bei }os fb

eoe}dfbd og}aeys cju`i ofyfdgye sjoe j ynef} cjbce}bs gmjuy fbxesyfbd fb ce}/

ygfb cjuby}fes" Fbxesyj}s tju`i `jja {jsfyfxe`v jb }os yngy juy{e}j}o djxe}/

bgbce {}gcyfces fb yne og}aey fb tnfcn ynev j{e}gye"

]es{jbiebys g`sj gd}eei yngy fy fs fo{j}ygby yj ubie}sygbi yne cjuby}vs cjbye~y

gbi `jcg` musfbess cusyjos% 9>%

Sng}enj`ie}}fdnyssucngsygd/g`jbd}fdnys >3% 74% ;%

Mjg}i{}jcess ;% 3% 64%

Se{g}gyeCngf}ogbgbiCEJ 5=% 97% 4%

yGm`e 3" s{ecfhfc djxe}bGbce cnG}Gcye}fsyfcs jh fo{j}yGbce

yj eoe}dfbd oG}aey fbxesyj}s

dg cgg x g

Ifsc`jsu}efbdebe}g` 7;;%

Ifsc`jsu}efbEbd`fsn 37%

Wug}ye}`vifsc`jsu}e 56%

Tf``fbdbessjhsebfj}ogbgdeoebyyjoeey 7;;%

Ojyfxgyfjbsjhcjby}j``fbdd}ju{*ogbgdeoeby 7;;%

Successfjb{`gbbfbdgbicjo{ebsgyfjbsy}ucyu}e 56%

4Fbc}egseiifsc`jsu}eg{{eg}syjogae}osoj}egyy}gcyfxefbxesyoebys"SeeNe}og`fbgbiTefsmgcn.=;;6&"Hu}yne}yne}ecebysyuivmv@eu|@fbsgbiTg}bjca.=;;6&suddesysmeyye}ifsc`jsu}ene`{sgyy}gcyhj}efdbfbxesyj}s"G`ynjudnynef}syuivijesbjyhjcusjbyneoglj}eoe}dfbdog}aeys.tfynbj}osh}joFbifgCnfbgj}]ussfggbijb`v78h}joegcnjhM}g|f`gbiYu}aevjuyjhynef}99;6}os&ynef}}esu`ysg}ecjbsfsyebytfynynebifbdsfbynfs{g{e}"Ynfssuddesysyngyifsc`jsu}efb{g}yfcu`g}ogvmegdjxe}bgbcehgcyj}yngyfssfdbfcgbygc}jsslu}fsifcyfjbstne}egsmjg}ifbie{ebiebceogvogyye}oj}efbsjoecjbye~ys.e"d"ifs{e}se`vne`i}os&yngbfbjyne}s.e"d"cjby}j``ei}os&"

,Ijesbjysuoiueyj}jubifbd"

7/31/2019 Survey Says... Corporate Governance Matters to Investors in Emerging Market Companies

13/16

Su}xevSgvsCj}{j}gyeDjxe}bgbceOgyye}syjFbxesyj}sfbEoe}dfbdOg}aeyCjo{gbfesp73

8" mjG}i fbie{ebiebce fs G `jTe}/`exe` cjbce}b

hj} eoe}dfbd oG}aey fbxesyj}s

]es{jbiebys e~{}essei ess cjbce}b gmjuy mjg}i cjo{jsfyfjb" S{ecfcg``v, ynev

sgfi yngy yne {}esebce j g mjg}i tfyn g oglj}fyv j fbie{ebieby if}ecyj}s tgs

bjy gs fo{j}ygby gs jyne} gcyj}s" Fy fs bjy yngy ynfs egyu}e fs ubiesf}gm`e fb g

yg}dey }o" ]gyne}, yne}e g}e jyne}, oj}e {}essfbd fssues yj cjbsfie}, ojsy sgfi"

Fbxesyj}s su}xevei {jfbyei juy yngy ojsy eoe}dfbd og}aey }os ngxe g cjby}j``fbd

d}ju{g gof`v j} g djxe}boebyub`fae }os fb iexe`j{ei og}aeys" Gbi sfbce

yne cjby}j``fbd d}ju{ g{{jfbys if}ecyj}s, yne fbie{ebiebce j yne mjg}i fyse` fs

wuesyfjbgm`e, exeb f yne if}ecyj}s g}e bjy gssjcfgyei tfyn yne cjby}j``fbd d}ju{"

4" yne d`jmG` hfbGbcfG` c}fsfs nGs e`exGyei yne

fo{j}yGbce jh djji djxe}bGbce

Gbjyne} aev bifbd }jo yne su}xev< fb yne tgae j yne d`jmg` bgbcfg` c}fsfs j

=;;>;6, fbxesyj}s g}e oj}e cguyfjus gmjuy fbxesyfbd fb }os fb cjuby}fes yngy

ngxe {}jm`eos tfyn cj}{j}gye djxe}bgbce"

Tneb gsaei gmjuy Cnfbg, oj}e yngb 9; {e}ceby j fbxesyj}s su}xevei }es{jbiei

tfyn jbe j yne j``jtfbd{e}cebye~{}esseifbc}egseifbye}esyfbFbifg

95{e}cebye~{}esseifbc}egseifbye}esyfbM}g|f`

=8{e}cebye~{}esseifbc}egseifbye}esyfbSjuynGh}fcg

=9{e}cebye~{}esseifbc}egseifbye}esyfbYu}aev

Djxe}bgbce egyu}es sucngs fbie{ebieby if}ecyj}sngxe `ess oegbfbd tnebyne fbie{ebieby if}ecyj}sg}e se`ecyei mv ynecjby}j``fbd sng}enj`ie}"Eoe}dfbd Og}aey Fbxesyj}Su}xev }es{jbieby

7/31/2019 Survey Says... Corporate Governance Matters to Investors in Emerging Market Companies

14/16

79pSu}xevSgvsCj}{j}gyeDjxe}bgbceOgyye}syjFbxesyj}sfbEoe}dfbdOg}aeyCjo{gbfes

>" s{ecfhfc cj}{j}Gye djxe}bGbce/}e`Gyei }ehj}os

cju`i oGae cjuby}fes oj}e Gyy}Gcyfxe fbxesyoeby

iesyfbGyfjbs

Fbxesyj}s tnj te}e fbye}xfetei ifscussei }ej}os ynev nj{ei yj see fb yne

eoe}dfbd og}aeys tne}e ynev fbxesyei j} tne}e ynev te}e ynfbafbd j fbxesy/

fbd" ]es{jbiebys suddesyei yngy }ej}os jcus jb fo{}jxei gbi oj}e cjbsfsyebyebj}ceoeby, s{ecfcg``v fb