Research Finds Publicly Traded Transparent Companies Outperform Counterparts

NEW YORK, Feb. 8, 2022 /PRNewswire/ -- Transparency Technologies LLC ("Transparency®"), a company with a mission to accelerate the world's adoption of transparency, released the largest conclusive third-party research by Dr. Derek Horstmeyer of George Mason University (GMU) School of Business on Transparency as a driver of portfolio performance. The research paper compares the return performance over a 5-year period between transparent and non-transparent publicly traded companies.

Through his independent and extensive research, Dr. Horstmeyer discovered that publicly traded transparent companies outperform their counterparts on average by 50 basis points per month, which yields an abnormal return of over 6 percentage points per annum. This research paper is under submission at Financial Analysts Journal.

"The study's conclusion perfectly aligns with our research and investment thesis that Transparent companies outperform their peers due to less friction, superior cultures, greater innovation, and impact," said Transparency's Founder and Chairman Paul Pagnato.

Dr. Horstmeyer is a full professor at GMU School of Business, specializing in corporate finance. His research, which has garnered several awards, focuses on boards, governance, and hedge fund activism. He is a monthly contributor to the Wall Street Journal, oversees the GMU Student Managed Investment fund, serves as Director of the new Financial Planning & Wealth Management major at GMU, and is consistently rated a top professor by his students.

"We find that firm transparency is associated with firm excess returns (after controlling for all factors known to drive returns)," said Dr. Horstmeyer. "Interestingly, Transparency Standards®, Transparent Costs™, and Total Accountability are the primary drivers of excess returns in transparent firms."

About Transparency Technologies LLC
Transparency Technologies LLC operates a digital platform accelerating the world's adoption of Transparency. The company is engaged in the development, launch and expansion of Transparency enabled technologies. The digital platform comprises multiple verticals: research, certifications, financial indexes, education, surveys and rankings. Virtual digital platforms enable corporations and professionals to become certified as Transparency adopters and ambassadors. The digital survey technologies are dual factor authenticated trusted surveys enabling employees and consumers to openly voice opinions. The company's proprietary algorithm, neural networks and web scrapers create research platform to quantify organizational transparency. The company's technologies analyze over 58,000 globally publicly traded companies creating a Transparency Funnel for performance impact-based indexes. The Transparency indexes incorporate Environmental, Social, Governance (ESG) and Sustainability standards and are licensed to third party asset managers and institutions. The company's global technologies and products are applicable and scalable to all industries and all demographics.

For more information, please visit transparency.global.

Media Contact: 
Paul Pagnato III
(302) 543-2077
[email protected]

SOURCE Transparency

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