A well-run company is likely to perform better and avoid errors and scandal, but judging management competence can be a tough task for individual investors. You can sift the evidence in financial statements and announcements, and glean what you can from whatever is in the public domain, and this will be useful research. But although company bosses have to be transparent and follow rules on certain financial and regulatory matters, they are always understandably keen to put a favourable gloss on their actions and business strategy. Investing in successful management: A well-run company is likely to perform better and avoid errors and scandal