Data and measures we use and why


Data for the corporate governance measures come from a company’s financial statements and the MBIE Companies Office website.  This information is free and publically available to past, current and future shareholders.  Data are collected for each company in the NZX 50 constituent list (as at 1 July 2017).

We remove companies that fall under a foreign corporate governance system as we are looking at New Zealand corporate governance.  We also remove unit trust companies and 'shell' companies (those that employ a 'manager' to run the company) as these are not companies in the true sense of the word. We replace these companies with the next largest companies in the NZX.

Fulfillment criteria

Each measure must be scored to allow a comparison of various company’s corporate governance.  In order to score each measure a fulfillment criteria is given to each measure.  Some criteria are based on a binary scale with a 1 awarded to company passing the criteria and a 0 otherwise.  Some criteria are scored with a range from 0 (worst) to  2 or 3 (best). The higher the score, the better corporate governance a company has.

For example, the number of independent board members can be scored from 0 to 3 depending on the percentage within the board.  Using a range to score certain measures allows greater variability and marginal differences between companies corporate governance can be seen. We also use a range to score to place larger weightings on certain areas. If company annual reports do not contain the information needed for a measure the score is 0 (whether scored as binary or a range).

Corporate governance measures

Our corporate governance measures fall under four higher level categories, these are:

  • Ownership structure
  • The Board of Directors
  • Independence
  • Remuneration

The measures contained within each category have a large body of academic research behind them and data can be reliably applied to NZX 50 companies. Please use the menu to the left to see a detailed description of each measure.