Stewardship And Financial Performance In Wide-Moat Firms

Abstract

Previous research has shown that the historical appreciation of Morningstar wide-moat companies exceeds that of benchmark indices. In the case of mutual funds, prior work has also demonstrated the significance of Morningstar’s stewardship grade in partially explaining such out performance. The present study examines 181 wide-moat companies and assesses whether stewardship has a comparable influence on the financial performance of individual firms.