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BNA Corporate Governance Report
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Articles By Hank Boerner:
(Click title or cover for PDF of full Article.
For more information about PDF's,
click here.)
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Scorekeepers, Rankers, Raters Will Shape Company
Reputations
(February 03, 2003)
A cottage industry of "scorekeepers" now analyze, judge,
rate, and otherwise qualify public companies' corporate governance and
accountability practices. Among the most important of these scorekeepers are
the credit rating agencies. In 2002, troubled by the accounting shenanigans
of some large companies, Standard & Poor's established its own measurement
of corporate earnings--only "core earnings" derived from a company's core
operations are now counted. That means companies in an S&P index--such as
the S&P 500--will see earnings from one-time sales or extraordinary events
discounted or eliminated in important S&P calculations. S&P has also
embarked on a program to develop corporate governance scores that will
become an important offering for the McGraw-Hill-owned company. |
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