The Governance of Certification Agents
Professor Jess Cornaggia (Smeal College of Business, Penn State University) presented the twenty-first lecture in the Indiana University - ECGI Online Series on the topic "The Governance of Certification Agents".
Certification agents play an important role in the economy because investors rely on them when making decisions about capital allocation. Such certification agents include credit rating agencies, proxy advisors, and ESG raters. This lecture discussed the basic governance structures of selected certification agencies, including a discussion of their commonalities and differences. It discussed the conflicts of interest they face, how such conflicts of interest can be managed, and how these characteristics affect their usefulness to investors.
The public lecture series was organised by Institute for Corporate Governance (ICG) in partnership with the Ostrom Workshop at Indiana University and ECGI.
The Indiana University - ECGI Online Series is a public lecture series on corporate governance, where distinguished speakers share insights on the evolving landscape of governance, finance, and market regulation. The Kelley School of Business Institute for Corporate Governance (ICG+E), in partnership with Ethical Systems, collaborates with ECGI to deliver this ongoing initiative.