Interactive Insight
The Recovery Gap.
What Governance Failure Actually Costs.
Twenty-four months after a severe corporate crisis, affected firms had on average recovered only their pre-crisis share price. The broader market had advanced 15%. Drag the scrubber to watch the twelve-point gap open.
Boards typically price governance investment against the write-down at the moment of the event. The DACH event-study evidence shows that the write-down is the smaller cost. The persistent cost is the gap that opens between an affected firm and the broader market over the two years that follow. That gap does not close. It is permanent loss of relative market position — the most expensive line item on the balance sheet of governance failure, and the one that almost no board prices ahead of time.
From the SGaaS White Paper
The full evidence and the structural response
Hunziker et al. (2025) is one of three empirical anchors the white paper uses to reframe governance as a continuous, adversarial investment against the recovery gap rather than against the event itself.