Investors should pay more attention to AI firms’ corporate governance
Such companies are often young and founder-led
FOR decades, stockbroking research has been dominated by financial assessment, whereby analysts scrutinise revenue growth, earnings trends, balance sheets and valuation multiples before arriving at a recommendation.
Yet, one of the most important determinants of long-term shareholder value often receives only passing attention: corporate governance.
This has long been a blind spot in investment analysis. It could become significantly more problematic as artificial intelligence companies occupy a larger share of public markets, especially since many AI plays lack decent track records of financial performance.
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