OREANDA-NEWS. November 10, 2011. Concorde Capital investment company with the support of the United States Agency for International Development (USAID) has prepared a report on the quality of corporate governance in Ukraine. Galnaftogaz and Khlibprom are among the top ten national companies with the most perfect level of corporate governance. The results of the report can be found here.

All in all survey covered 114 Ukrainian companies. They were evaluated according to 10 criteria such as accessibility of financial statements according to Ukrainian and international standards, disclosure of ownership and corporate structure, the presence of institutional investors, strategic risks and the risk of minority shareholders’ equity stake dilution, the level of publicity and website informativeness, possibility of contact with management. Galnaftogaz is one of four companies which corporate governance meets all these criteria and which accordingly took maximum points. Khlibprom got one point less than Galnaftogaz from Concorde Capital.

Authors note that the higher standards of corporate governance in the company are, the more attractive to investors company is and the more positively it affects the price of its securities. For example, according to Concorde Capital, Galnaftogaz stocks’ yield increased by almost 30% in 2011. It is the highest index among four rating leaders.

Briefly describing Galnaftogaz and Khlibprom, the authors of the study point out that these companies consistently received the highest marks in previous similar studies, they are among the few in Ukraine having corporate governance codes, and their financial statements are regularly checked by major international auditors (Ernst & Young company has been doing it since 2006). Concorde Capital investment company is positioning Galnaftogaz to be the second largest oil products retail market operator in Ukraine with a market share of 12.1%, and Khlibprom as the third-largest producer of bakery products with a market share of 8%.