Does good corporate governance mean higher stock returns for public companies?

The answer isn’t easy to come by, especially when the market tends to quickly price any “good citizenship” into the stock. Research from Wells Fargo/Heep Foundation Professor of Finance Shane Johnson and Associate Professor of Finance Sorin Sorescu, along with PhD graduate Ted Moorman, was the academic backing for a story on just this topic in the July 2 editions of The Wall Street Journal.

The trio found that companies may not see strong returns once their “good citizenship” is incorporated into stock price. Find the story, which appeared in The Journal‘s B section, at

— Staff Reports