By: Tien Yu-pin and Frances Huang
Taipei, Oct. 29 (CNA) Shares of companies that have good corporate governance records tend to post higher gains, according to Taiwan Index Plus Corp. (TIP, 台灣指數公司), a wholly owned subsidiary of the Taiwan Stock Exchange (TWSE).
TIP, which compiles and manages indexes on the TWSE, said that with the benchmark Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) hitting a high of 9,385.65 for this year at the close on Oct. 25, the TWSE Corporate Governance 100 Index (台灣公司治理100指數) ended at a record high of 5,321.72.
The TWSE CG 100 Index was launched on June 29, 2015. The index is comprised of 100 stocks that scored among the top 20 percent under the exchange’s Corporate Governance Evaluation System.
TIP said that as of Oct. 25, the TWSE CG 100 Index had gained 19.80 percent year-to-date, outperforming the TAIEX, which had risen 15.42 percent, indicating that the TWSE CG 100 Index has strong constituents chosen through a sound selection mechanism. [FULL STORY]