In partnership with Ernst & Young (EY), the Quito Stock Exchange recently published the results of the first market survey (in Spanish “La Voz Del Mercado”) regarding the corporate governance practices of issuers in the local market.

In the launch event, Paul McEvoy, General Manager of the Quito Stock Exchange stated “Together with EY, we are delighted to publish this first Exchange governance survey (La Voz Del Mercado) in Ecuador. As a member of Sustainable Stock Exchanges initiative, this annual survey will contribute to raising awareness of ESG factors in Ecuador. This is a clear example of how capital markets can contribute to raising the quality of governance, and thereby to improved performance, of companies in the interests of all stakeholders”.

Following the example of surveys carried out in recent year in Chile and Peru (between EY and the Santiago and Lima Stock Exchanges), the survey recognized “Favorita Corporation” as Ecuador’s listed company with the best perception amongst investors for its corporate governance practices. Surveys were sent out to more than 1,000 investors and market participants and covered 40 of the Exchange’s most representative listed companies.

Survey results show that actors in Ecuador take into consideration ESG factors when making their investment decisions. The report highlights the strength provided by diversity and the importance of independence amongst company Board members, the need for proper training of Directors, and requests that issuers continue to improve the quality of information that companies make available to potential investors.