Скачать презентацию Corporate Governance Reform Regional Cooperation Prof Stephen Y Скачать презентацию Corporate Governance Reform Regional Cooperation Prof Stephen Y

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Corporate Governance Reform: Regional Cooperation Prof Stephen Y L Cheung City University of Hong Corporate Governance Reform: Regional Cooperation Prof Stephen Y L Cheung City University of Hong Kong 1

Contents • Why it is important? • What has been done? • What next? Contents • Why it is important? • What has been done? • What next? 2

Regional Effects • The ‘Guidelines for Good Corporate Governance Practice’ prepared by the PECC, Regional Effects • The ‘Guidelines for Good Corporate Governance Practice’ prepared by the PECC, endorsed by APEC ministerial meeting • Scorecard for listed companies – Thailand – Hong Kong – China – The Philippines 3

Research Methodologies I • Survey results based on publicly available information • Hang Seng Research Methodologies I • Survey results based on publicly available information • Hang Seng Index (HSI), Hang Seng Hong Kong Composite Index (HSHKCI), Hang Seng China. Affiliated Corporations Index (HSCCI) and Hang Seng China Enterprises Index (HSCEI) constituent stocks • Based on information disclosed in 2002 • 168 major companies are covered 4

Research Methodologies II • Avoids subjectivity bias • Not dependent on companies’ willingness • Research Methodologies II • Avoids subjectivity bias • Not dependent on companies’ willingness • However, not as rich as an internal assessment . . . • . . . and captures only what the companies released in public and their documentation • Written request was sent to individual companies. Only a few companies supplied us with information 5

Objectives of Corporate Scorecard for Hong Kong Listed Companies Encourage adoption of best practice Objectives of Corporate Scorecard for Hong Kong Listed Companies Encourage adoption of best practice of corporate governance in Hong Kong through a systematic evaluation of current practices Define a methodology/ framework to assess corporate governance practices in Hong Kong Develop specific criteria and a measurement tool to evaluate individual companies Hopefully Set up processes to evaluate corporate governance of Hong Kong companies on an annual basis 6

Consistency • Each company was rated by two different members • The overall results Consistency • Each company was rated by two different members • The overall results were cross-checked by academics 7

Scorecard Followed The Five OECD Corporate Governance Principle OECD principle Number of questions & Scorecard Followed The Five OECD Corporate Governance Principle OECD principle Number of questions & sub-questions A. Rights of shareholders 16 B. Equity of shareholders 10 C. Role of stakeholders 4 D. Disclosure and transparency 30 E. Board responsibilities 26 86 • OECD is internationally recognized • HKEx guidelines comprehensively covered • 168 public companies surveyed 8

Positive Correlation between Good Corporate Governance and Company Valuation 9 Positive Correlation between Good Corporate Governance and Company Valuation 9

Market Valuation (Tobin’s Q) by Corporate Governance Entry Quartile 10 Market Valuation (Tobin’s Q) by Corporate Governance Entry Quartile 10

Corporate Governance Performance by Indices Strong Weak HSI (恒生指數) HSHKCI (恒生香港綜合指數) HSCEI (恒生中國企業指數) HSCCI Corporate Governance Performance by Indices Strong Weak HSI (恒生指數) HSHKCI (恒生香港綜合指數) HSCEI (恒生中國企業指數) HSCCI (恒生香港中資企業指數) 11

Corporate Governance Performance by Industries Strong Weak 12 Corporate Governance Performance by Industries Strong Weak 12

Corporate Governance Performance by Categories Strong Weak A: Rights of Shareholders (股東的權利) B: Equitable Corporate Governance Performance by Categories Strong Weak A: Rights of Shareholders (股東的權利) B: Equitable Treatment of Shareholders (對股東的公平待遇) C: Role of Stakeholders in Corporate Governance (利益關係團體在公司治理中扮演的角色) D: Disclosure and Transparency (公開與透明化) E: Board Responsibilities (董事會的責任) 13

A. Rights of Shareholders (股東的權利) 84. 49 27. 79 Improvements: • Improve the quality A. Rights of Shareholders (股東的權利) 84. 49 27. 79 Improvements: • Improve the quality of Notice to Call Shareholders Meeting • Attendance of all Board members • AGM minute – any Q&A sessions? – any resolutions being solved? 14

A. Rights of Shareholders (388) (股東的權利) 15 A. Rights of Shareholders (388) (股東的權利) 15

B. Equitable Treatment of Shareholders (對股東的公平待遇 ) 93. 33 63. 33 Improvements: • Provide B. Equitable Treatment of Shareholders (對股東的公平待遇 ) 93. 33 63. 33 Improvements: • Provide rationale/ explanation for related-party transactions • Allow minority shareholders to influence the Board • To facilitate voting by proxy 16

B. Equitable Treatment of Shareholders (762) (對股東的公平待遇 ) 17 B. Equitable Treatment of Shareholders (762) (對股東的公平待遇 ) 17

C. Role of Stakeholders in Corporate Governance (利益關係團體在公司治理中扮演的角色) 100 Improvements: • Disclose more details C. Role of Stakeholders in Corporate Governance (利益關係團體在公司治理中扮演的角色) 100 Improvements: • Disclose more details on the safety and welfare of its employees • Long-term employee incentive plan 41. 67 18

C. Role of Stakeholders in Corporate Governance (2388) (利益關係團體在公司治理中扮演的角色) 19 C. Role of Stakeholders in Corporate Governance (2388) (利益關係團體在公司治理中扮演的角色) 19

D. Disclosure and Transparency (公開與透明化 ) 90. 33 Improvements: • Transparency in ownership structure D. Disclosure and Transparency (公開與透明化 ) 90. 33 Improvements: • Transparency in ownership structure • Quality of Annual Report 64. 01 – Basis of Board members’ remuneration – Operating risks • Communication with shareholders – Website’s contents 20

D. Disclosure and Transparency (45) (公開與透明化 ) 21 D. Disclosure and Transparency (45) (公開與透明化 ) 21

E. Board Responsibilities (董事會的責任 ) 81. 67 41. 67 Improvements: • A set of E. Board Responsibilities (董事會的責任 ) 81. 67 41. 67 Improvements: • A set of written corporate governance rules • Corporate vision/mission • The quality of the Audit Committee Report in the Annual Report – Attendance – Internal control – Management control, etc. 22

E. Board Responsibilities (2) (董事會的責任 ) 23 E. Board Responsibilities (2) (董事會的責任 ) 23

Results • NOT finger-pointing exercise • Important input for policy-makers, companies, and the public Results • NOT finger-pointing exercise • Important input for policy-makers, companies, and the public • Score for individual companies will not make public • Feedback report can be obtained for individual companies 24

The Top 10 Best Performing Companies (by alphabetical order) • • • Asia Satellite The Top 10 Best Performing Companies (by alphabetical order) • • • Asia Satellite (1135) Bank of East Asia (23) China Mobile (941) CLP Holdings (2) HK & S Hotels (45) HKEx (388) HSBC Holdings (5) Linmark Group (915) MTR Corporation (66) Vtech Holdings (303) 25

The Characteristics of Our Sample Companies All HSI HSHKCI HSCEI Market Value Mean 20, The Characteristics of Our Sample Companies All HSI HSHKCI HSCEI Market Value Mean 20, 395. 87 88, 227. 87 27, 870. 77 25, 754. 78 3, 920. 87 (in million HK$) S. D. 76, 356. 70 156, 370. 02 90, 962. 89 80, 826. 03 5, 899. 57 ROA Mean 0. 04 0. 07 0. 04 0. 05 S. D. 0. 10 0. 07 0. 12 0. 10 0. 04 Mean 16. 18 17. 88 16. 16 16. 04 16. 63 S. D. 1. 66 1. 58 1. 85 1. 26 1. 19 Mean 2. 05 1. 61 2. 11 1. 89 2. 03 S. D. 1. 68 0. 95 1. 47 1. 06 2. 39 Mean 1. 39 1. 92 1. 61 0. 98 0. 79 S. D. 2. 23 3. 59 2. 61 0. 69 0. 79 Dummy CEO & Chairman 56. 00 13. 00 43. 00 8. 00 Dummy Audit committee 134. 00 30. 00 99. 00 24. 00 17. 00 Dummy Compensation 38. 00 12. 00 30. 00 4. 00 8. 00 Dummy ADR 91. 00 28. 00 63. 00 11. 00 22. 00 Dummy MSCI 36. 00 22. 00 36. 00 - - Dummy H Share & Red Chips 58. 00 6. 00 27. 00 31. 00 Ln(TA) Current D/E No. of firms with the committee

OLS Results for CGI with Control Variables MTBV (1) (2) (3) (4) (5) 0. OLS Results for CGI with Control Variables MTBV (1) (2) (3) (4) (5) 0. 0330** 0. 0428** 0. 0475*** 0. 0356** 0. 0337** 2. 5282** 3. 0430*** 3. 0431*** 2. 2866** Ln(TA) -0. 3081*** -0. 2043** -0. 2209** -0. 3583*** Current -0. 042 -0. 0317 -0. 0209 0. 0098 D/E -0. 0441 -0. 0190 0. 0347 0. 1423 BOUT -0. 0249 -0. 0070 -0. 0193 BEXC -0. 1089*** -0. 0941** -0. 0622 Top 5 -0. 0128*** -0. 0126*** -0. 0011 Dummy CEO & Chairman 0. 1837 0. 1738 Dummy Audit committee 0. 1353 0. 2321 Dummy Compensation 0. 2794 0. 3000 CGI ROA Dummy ADR -0. 1421 Dummy MSCI 1. 4939*** Dummy H Share & Red Chips 0. 3374

OLS Results for Transparency Index with Control Variables MTBV (1) (2) (3) (4) TINDEX OLS Results for Transparency Index with Control Variables MTBV (1) (2) (3) (4) TINDEX 0. 0371** 0. 0414** 0. 0373** 0. 0388*** NONTINDEX 0. 0179* 0. 0202** 0. 0136 0. 0108 ROA 2. 3482** 2. 8850*** 2. 8973*** 2. 1137** Ln(TA) -0. 3414*** -0. 2419*** -0. 2540** -0. 3850*** Current -0. 0575 -0. 0496 -0. 0416 -0. 0108 D/E -0. 0589 -0. 0319 0. 0164 0. 1205 BOUT -0. 0277 -0. 0106 -0. 0267 BEXC -0. 1046*** -0. 0902** -0. 0558 Top 5 -0. 0140*** -0. 0138*** -0. 0017 Dummy CEO & Chairman 0. 2084 0. 1935 Dummy Audit committee 0. 1642 0. 2637 Dummy Compensation 0. 1997 0. 2254 Dummy ADR -0. 1382 Dummy MSCI 1. 4847*** Dummy H Share & Red Chips 0. 2346

Result (I) • Corporate governance does matter – Positively and significantly related to the Result (I) • Corporate governance does matter – Positively and significantly related to the market value • Number of executive directors have negative impact • The top 5 shareholders’ holding have negative impact • The inclusion in the MSCI have positive impact 29

Result (II) • Transparency and non-transparency indices – Transparency index does matter – Non-transparency Result (II) • Transparency and non-transparency indices – Transparency index does matter – Non-transparency index become insignificant when the number of executive director and top 5 shareholder’s share holding add into the model 30

Concluding Remarks • Similar results are found in Thailand • Comparison among different markets Concluding Remarks • Similar results are found in Thailand • Comparison among different markets 31

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