Governance and Performance in Emerging Markets

International Finance Corporation  
Policy Initiative: Sustainable Global Policy
15. March 2019

In 2016, IFC’s Corporate Governance Group launched an empirical study to explore the link between the quality of IFC portfolio clients’ corporate governance and their financial and economic performance over a four-to-five-year period. Using client surveys and portfolio financial, economic, and development outcome data, IFC tested the hypothesis that better corporate governance is associated with better performance over a defined period.

The analysis of collected data showed that investing in companies with better corporate governance at the time of disbursement of IFC’s investment is associated with a better average credit risk rating by almost 1.50 points throughout the IFC investment period.

International Finance Corporation | Governance and Performance in Emerging Markets

EPF | Economic Policy Forum

EPF | Economic Policy Forum