Shake hands but count how many fingers you get back
It’s no secret that India, like every emerging market, has seen its share of crony capitalism over the years. Since 1996, when we incorporated corporate governance considerations into our investment process, Quantum Advisors has carried the corporate governance torch in India. It is an integral component of any investment decision, and always has been.
Merely analyzing corporate governance quality is one thing, though; actually doing something about it when something is awry is another entirely. We’re proud to note that we have not shied away from engaging with and openly criticizing management teams over the years when we feel they have failed to uphold their duties to shareholders. It isn’t always a successful effort, but regardless of the outcome the importance of keeping boards accountable cannot be understated: creating an investment culture in which company board members are keenly aware that their actions will not be swept under the rug is essential to maintaining and enhancing the Indian capital markets’ respectability.