Corporate Governance Quotient (CGQ^®)

Complete ratings and profiles for risk management and performance enhancement

Companies with better corporate governance have lower risk, increased profitability and higher valuation, according to a number of recent studies published by academics and financial professionals. The result: the ability to rate corporate governance structure and practice is more important in equity research and investment decision-making.

First introduced in 2002, Corporate Governance Quotient (CGQ) measures the strengths, deficiencies and overall quality of a company's corporate governance practices and board of directors. CGQ provides corporate governance rankings on more than 8,000 companies across 31 countries, with underlying data points for up to 65 individual corporate governance variables.

Through RiskMetrics Group's suite of Financial Research and Analysis services, we deliver CGQ ratings and profiles for both institutional investors and corporate issuers:

• CGQ for Institutional Investors - A powerful tool to identify portfolio risk related to corporate governance and factor in governance ratings to help drive increased shareholder value.
• CGQ Analytics for Corporations - For corporations to analyze and benchmark their corporate governance practices ratings relative to peer companies