In 2007 there were three prominent corporate governance rating firms Corporate Library (TCL), Management Metrics International (GMI), and Institutional Shareholders Services (ISS). These firms have evaluated the efficacy and the lack of control systems of thousands of publicly traded companies. Although members of the investors agreed that good policies are important for the protection of shareholders from potentially lucrative managers, there were many questions about the usefulness of ratings issued by the Office itself. Questions ranged from whether the control system can be adequately represented in a single, numerical score that high or low rating would indicate. In addition, approval of the ISS involved a conflict of interest by selling consulting services to companies on how to improve their ratings has led some to question the objectivity of the evaluation process. "Hide
by David F. Larcker, Brian Tayan Source: Stanford Graduate School of Business 12 pages. Publication Date: October 15, 2007. Prod. #: CG08-PDF-ENG
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