Google Search

08 March 2009


Last year a very popular business TV channel awarded the Golden Peacock Award for Corporate Governance to Mr Raju of Satyam infamy. Very lately we also have the spectacle of the print and net based media going ga-ga over Nirmal Kotecha and his meteoric rise. Fortunately his unethical and illegal means now stand exposed. He was assisted in his misadventure by a senior journalist of a leading pink paper. Within the larger question of ethics, it also raises the issue of the standard of corporate governance and standard of journalism in India. It seems, how much ever we denigrate the western world for its culture of corporate greed and manipulation by media, we are no better or worse than them. 

And how does it affect you as an investor? Well in my view it raises the Cost of Equity. Simply put, lower standards of corporate governance implies higher risk entailed by the equity investor and hence a higher cost of equity. A sort of paying a higher insurance premium when sailing in troubled somalian waters to cover for the enhanced risk.

All in all, a clear negative for the stock market. The only positive takeway from these sordid affairs is the strength displayed by the Indian regulator and the systems put in place. Hopefully this will deter more such mis-adventurous finaglers. About the dishonesty in journalism, one can only pray that the power of media is wielded by more sincere and trustworthy hands.


Anonymous said...

Good day !.
might , probably curious to know how one can reach 2000 per day of income .
There is no initial capital needed You may start to receive yields with as small sum of money as 20-100 dollars.

AimTrust is what you thought of all the time
The company incorporates an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.

It is based in Panama with offices around the world.
Do you want to become a happy investor?
That`s your choice That`s what you really need!

I`m happy and lucky, I began to get real money with the help of this company,
and I invite you to do the same. If it gets down to select a proper partner who uses your savings in a right way - that`s AimTrust!.
I make 2G daily, and what I started with was a funny sum of 500 bucks!
It`s easy to get involved , just click this link
and go! Let`s take our chance together to become rich

Anonymous said...

You may probably be very interested to know how one can make real money on investments.
There is no need to invest much at first.
You may begin earning with a sum that usually goes
on daily food, that's 20-100 dollars.
I have been participating in one company's work for several years,
and I'm ready to share my secrets at my blog.

Please visit my pages and send me private message to get the info.

P.S. I earn 1000-2000 per daily now. [url=]Online Investment Blog[/url]

Anonymous said...

Hi everybody!

We are not acquainted yet? It’s easy to fix,
my name is Peter.
Generally I’m a venturesome analyst. all my life I’m carried away by online-casino and poker.
Not long time ago I started my own blog, where I describe my virtual adventures.
Probably, it will be interesting for you to find out about my progress.
Please visit my blog. I’ll be interested on your opinion..


This blog should not be construed as investment advice, either on behalf of particular stocks or in regard to overall investment strategies. It is a site aimed at understanding competitive advantages and valuing businesses. The information provided here comes from publicly accessible sources, but errors in these sources and in transcription may occur. Any investment decisions you make should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.