A MODEL OF EVALUATION AND ASSESSMENT OF CORPORATE GOVERNANCE AND RESPONSIBILITY
The Entropy model of risk evaluation and assessment of the corporate governance of corporations (public, governmental and private) provides a quantitative estimate of the corporate governance risk in the various issuers in the Israeli capital markets, as is customary in global developed capital markets.
The model aims to evaluate the level of corporate governance risk of an issuer on the basis of a system of quantitative and qualitative parameters that relate to rules and principles from the corporate governance world.
Measuring the parameters facilitates the performance of an assessment of the potential risk level the issuer, based on the characteristics of the issuer and the conduct of the corporation’s executives and organs towards investors.
To date, the model is comprised of four main categories (soon to come is a fifth category relating to corporate responsibility) that include about 100 different parameters that are collected regarding each corporation: