| Headline: New rules of good behaviour - Troika Dialog Methodology Source: Euromoney Date: September 2001 The table above is a summary of the corporate governance risk profiles of Russia’s largest companies, developed by Troika Dialog. Troika studied 58 RTS-listed companies, which make up 95.4% of the Russian market by capitalization, to assess their (1) transparency, (2) board accountability and (3) management policy towards outside shareholders (investor relations). These correspond to the three “axes” of corporate governance: ownership, directorship and management. We use 25 measures to rate the companies’ record in this field. We further analyze the safety net on corporate and market infrastructure levels, which can help prevent or mitigate corporate governance abuse: (4) culture of corporate conduct and (5) information disclosure and financial discipline. The companies’ performance on each of the five elements is marked on a three-point scale. The simple average of these grades is a measure of a company’s exposure to corporate governance risk. Our system is not a rating methodology, nor does it yield a stock recommendation. Its aim is to assist investors in making the right decision by highlighting the corporate governance aspects of their prospective investments. |