CORPORATE MANAGEMENT LEVEL DIRECTLY AFFECTS RUSSIAN COMPANIES VALUE

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MOSCOW, June 3 (RIA Novosti) - Russian companies value can grow by 38% in case a good corporate management is applied, said Robert Felton, head of the Global Corporate Management Department of McKinsey company, at a Corporate Management Problems conference on Thursday.

According to him, the research among the heads of investment funds managing the assets in the amount of $9 trillion undertaken by McKinsey showed that three fourth of them are ready to pay premiums for shares of the companies, which apply a good corporate management practice.

The expert said that the highest premium for application of the practice is paid in Morocco (41%), and the lowest in Canada (11%). Hence, Russia with its 38% is one of the three countries with the highest premium level.

Mr. Felton stressed that "it was not just idle words, it was a real growth of a company value and attraction of funds".

He also noted that investors pay less attention to financial performance, than to application of the corporate management practice. Mr. Felton also stressed that investors regard property rights protection as the priority task with law enforcement practice being the last.

In his turn, George Dallas, Standard & Poors managing director, stressed that transparency of companies in Russia should be enhanced. According to him it particularly relates to the property issues, because it is occasionally unclear, who is the company shareholder.

Besides, he believes that the public should be informed of transactions and salaries of the company managers. No less important, according to Mr. Dallas, is disclosure of non-financial information about the management, executives, members of the board, etc.

He also said that Standard & Poors had undertaken a research on transparency of companies in various countries of the world. "I have to admit that Russia was at the bottom of the list in terms of transparency", - noted Mr. Dallas.

He added that Russia had made certainachievements in this area. "Russia should not rest upon what has been achieved, a lot of work in the area of transparency is to be done, it's necessary to exploit the success", concluded George Dallas.

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