A GAMMA score reflects Standard & Poor’s opinion of the relative strength of a company’s corporate governance practices as an investor protection against potential governance-related losses of value or failure to create value. GAMMA is designed for equity investors in emerging markets and is focused on non-financial risk assessment, and in particular, assessment of corporate governance risk.
A Tool for Investors
Market participants want to understand the governance risk associated with investment in companies’ shares. GAMMA analysis can serve as a tool with varying potential applications: investment screening, highlighting areas for an individual firm’s improvement, assisting investors in their engagement with companies about corporate governance concerns.
A Tool for Companies
A GAMMA score serves companies as a road map for improvement, a proxy for equity risk assessment addressing non-financial risks, and a communications tool to inform investors about specific levels of governance-related risks.
