(LUẬN văn THẠC sĩ) the impact of corporate governance disclosure on the financial performance of SSI30 companies

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY Vu Thi Thu Van THE IMPACT OF CORPORATE GOVERNANCE DISCLOSURE ON THE FINANCIAL PERFORMANCE OF SSI30 COMPANIES MASTER THESIS In Banking Ology code: 60.31.12 Supervisor: Dr Pham Huu Hong Thai TIEU LUAN MOI download : skknchat@gmail.com Ho Chi Minh City, 2011 Acknowledgements Hereby, the writer would like to express her heartfelt thanks to Dr Pham Huu Hong Thai for his great instruction to complete this thesis, to the professors & the teachers for building up her understanding & her good acting and to her loved ones for their contribution to meaning of her life TIEU LUAN MOI download : skknchat@gmail.com Abstract Experience in countries with large and active equity markets shows that disclosure can also be a powerful tool for influencing the behavior of companies and for protecting investors A strong disclosure regime can help to attract capital and maintain confidence in capital markets Insufficient or unclear information may hamper the ability of markets to function, may increase the cost of capital and result in a poor allocation of resources However, in Vietnam, Corporate governance is still a new concept And The World Bank asses that investor protection is inadequate; related-party transactions are pervasive; compliance with accounting standards is insufficient; and disclosure and transparency are limited Therefore, this paper is motivated to give in further detail at what level the quality of annual reports in Vietnam is by using the Standard & Poor‟s scorecard to rate and to investigate the impact of corporate governance disclosure on the financial performance in order to illustrate why the pursuit of better corporate governance practices can be of genuine and practical benefit to companies themselves As a fact, the annual reports viewed in this study are mainly with introduction, advertising, financial statement, balance sheet …., not reporting about corporate during the year as it is With correlation, relationships between financial performance and corporate governance disclosure expected are not seen from the samples Keywords: Corporate Governance, Corporate Governance disclosure score, annual reports, financial performance TIEU LUAN MOI download : skknchat@gmail.com Table of content Chapter Introduction Chapter Literature review on corporate governance in general and on disclosure of corporate governance in particular 2.1 Theoretical Literature Review 2.2 Empirical Literature Review 10 Chapter Research methodology 20 3.1 The sample 20 3.2 Research methodology 20 Corporate Governance Disclosure Scorecard 20 Financial Performance 21 Correlation 22 Chapter Findings & Discussion 23 4.1 Corporate governance disclosure scores 23 4.2 Financial performance 31 4.3 Correlation 32 Chapter Conclusion 36 References 43 Appendix CG Disclosure Scorecard (Standard & Poor's) 48 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies (LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies Appendix List of Tables 56 Appendix List of Figures 57 CHAPTER INTRODUCTION Statement of problems The corporate governance issue has beccome of great interest those days Both Asian countries and international organizations launched some initiatives to enhance corporate governance For example, the Organization of Economic Cooperation and Development (OECD) issued a document entitled „Principles of Corporate Governance‟ in 1998 and a revised version in 2004 (OECD, 2004) according to which Corporate governance is a key element in improving economic efficiency and growth as well as enhancing investor confidence The presence of an effective corporate governance (CG) system, within an individual company and across an economy as a whole, helps to provide a degree of confidence that is necessary for the proper functioning of a market economy As a result, the cost of capital is lower and firms are encouraged to use resources more efficiently, thereby supporting growth The Cadbury Committee (1992) advocated, first of all, disclosure as “a mechanism for accountability, emphasizing the need to raise reporting standards in order to ward-off the threat of regulation Improved disclosure results in improved transparency, which is one of the most essential elements of healthy CG practices.” Communication via corporate disclosure is selfevidently a very important aspect of CG in the sense that meaningful and adequate disclosure enhances good CG For instance, Whittington (1993) states: “Published annual reports are used as a medium for communicating both quantitative and qualitative corporate information to shareholders, potential shareholders (investors) and other users” Although publication of an annual report is a statutory requirement, companies normally voluntarily disclose information in excess of the mandatory requirements Company management recognizes that there are economic TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies (LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies benefits to be gained from a well-managed disclosure policy However, in Vietnam, Corporate governance is still a new concept As per the recent International Finance Corporation – Mekong Private Sector Development Facility survey in Vietnam, only 23% of the companies surveyed understand the basic concept of Corporate Governance, and there remains confusion between “governance” and “management” between company directors And The World Bank asses that investor protection is inadequate; related-party transactions are pervasive; compliance with accounting standards is insufficient; and disclosure and transparency are limited (Report on the Observance of Standards and Codes 2006) And relatively little research work has been done in the area of corporate governance in Vietnam If it is widely perceived that new laws and regulations to promote better corporate governance practices just end up creating additional (and unnecessary) burdens for companies, then their effectiveness will be limited Furthermore, it is important that any drive to improve corporate governance practices seek to illustrate why the pursuit of better corporate governance practices can be of genuine and practical benefit to companies themselves.( Freeman & Nguyen 2006) As per the assessment of World Bank, Quality of disclosure in the annual reports of Vietnamese listed companies is not adequate and is not in compliance with OECD non-financial disclosure requirements The quality of disclosure is low while a strong disclosure regime is an important feature of marketbased monitoring of corporate conduct and is central to the ability of shareholders to exercise their voting rights effectively Experience in countries with large and active equity markets shows that disclosure can also be a powerful tool for influencing the behavior of companies and for protecting investors A strong disclosure regime can help to attract capital and maintain confidence in capital markets Shareholders and potential investors require access to regular, reliable and comparable information in sufficient detail for them to assess the acting of management and make informed decisions about the valuation, ownership and voting of shares Insufficient or unclear information may hamper the ability of TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies (LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies markets to function, may increase the cost of capital and result in poor allocation of resources Disclosure also helps improve public understanding of the structure and activities of companies, their policies and performance with respect to environmental and ethical standards and their relationships with the communities in which they operate Research Objectives Therefore, this thesis is motivated to give in further detail at what level the quality of annual reports in Vietnam is by using the Standard & Poor‟s (S&P) scorecard to rate and one more objective is to investigate the impact of corporate governance disclosure on the financial performance, respectively as a support to above suggestion by Freeman & Nguyen (2006) for the illustration why the pursuit of better corporate governance practices can be of genuine and practical benefit to companies themselves Significance of the thesis This study gives a closer and more detailed fact of the Corporate Governance in Vietnam instead of saying, describing it in general at starting From the figure of this research, in comparison with other countries and from the test, the readers could imagine clearer and exactly at which level Vietnam is , how far Vietnam is behind and how much work Vietnam should This helps enhance public awareness and training on corporate governance The findings suggest direction for further research, as well as give suggestions for Companies & policymakers to consider Hypothesis statement And in this thesis, the following hypothesis suggested by Abdo & Fisher, 2007: “Companies with high levels of corporate governance disclosure will TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies 51 56 Is the frequency of NC meetings disclosed? 57 Did the NC meet more than times in the year? 58 Did the NC meet more than times in the year? 59 Was the attendance at NC meetings more than 60%? 60 Was the attendance at NC meetings more than 80%? 61 Was the attendance at NC meetings 100%? 62 Is the appraisal of board performance conducted? 63 Has the nominating committee established criteria for evaluation of performance of the board? 64 "Is disclosure made of the process of board evaluation? (e.g., conducted by external party, conducted by NC, by shareholders etc.)" 65 "Is criteria for evaluating board performance disclosed? (e.g., company's share price performance over past years; return on assets; return on equity; return on investment; economic value added; profitability on capital employed)" 66 Is individual performance of board members evaluated? 67 "If the anser to #66 is yes, is criteria for individual director performance evaluation disclosed?" 68 "Is disclosure made of the process of director evaluation? (e.g., conducted by external party, conducted by NC, by shareholders etc.)" Remuneration matters 69 Does the company have a remuneration committee? 70 Is the list of remuneration committee members disclosed? 71 Is the majority of RC independent? 72 Are all members of the RC independent? 73 Is the remuneration committee chaired by an independent non-executive director? 74 Is disclosure made of individual members' attendance at the remuneration committee meetings? 75 Is the frequency of RC meetings disclosed? TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies (LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies 52 76 Did the RC meet more than times in the year? 77 Did the RC meet more than times in the year? 78 Was the attendence at the RC meetings more than 60%? 79 Was the attendence at the RC meetings more than 80%? 80 Was the attendence at the RC meetings 100%? 81 Is at least one remuneration committee member knowledgeable about executive compensation? 82 Does the remuneration committee recommend to the board a framework of remuneration for the board and key executives? 83 Does the remuneration committee determine specific remuneration packages for executive directors and the CEO? 84 Are the remuneration committee's recommendations submitted for endorsement by the entire board? 85 "Does the remuneration committee's review include all aspects of remuneration (such as salaries, fees, allowances, bonuses and options)?" 86 "Is disclosure made of the remuneration committee's processes (e.g., external compensation specialists hired) to ascertain industry practices and salary levels for pay and employment conditions?" 87 "Is executive director compensation linked to industry, company and/or individual performance?" 88 Is the percentage of performance-related elements of executive directors' remuneration above 50%? 89 "Is compensation of non-executive directors linked to their level of contribution and responsiblities, and time spent and effort?" 90 Were industry experts consulted on the remuneration of non-executive directors? 91 Has the board recommended all components of non-executive director compensation for approval at the annual general meeting? 92 Do service contracts for directors contain onerous removal clauses? TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies (LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies 53 93 Did the remuneration committee consider the appropriateness of compensation commitments for early termination of directors? 94 Are directors prenvented from deciding on their own remuneration? 95 "Does director remuneration include long-term incentives?(E.g., bonuses payable after 12 months and/or share option with a vesting period > 12 months)" 96 Is disclosure made to shareholders of remuneration of executive directors? 97 Is disclosure made to shareholders of remuneration of non-executive directors? 98 Is disclosure made to shareholders of remuneration of top executives who are not directors? 99 "is disclosure made of components of remuneration analyzed by salaries, variable bonuses, options and long-term incentives?" 100 Is full disclosure made of remuneration of each director by name? 101 Is disclosure made of remuneration to an employee who is an immediate family member of a director or the CEO? Is there are no such an employees is this disclosed? 102 "Is the company has any shares/options for employees/directors, are the details of these disclosed (shares issued to employees or options granted)? If it does not have such schemes, is this fact disclosed?" Audit matters 103 Is the list of audit committee members disclosed? 104 Is the majority of audit committee independent? 105 Is the entire audit committee independent? 106 Is the chairman of the audit committee independent? 107 Is the disclosure made of the basis selection of audit committee mebers? 108 Do at least memebers of the audit committee have accounting experience or related finanacial management expertise or experience?(This could either be an accounting or financial qualification or previous work experience in financial or investiment positions.) TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies (LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies 54 109 Is disclosure made of individual audit committee members attendance at audit committee meetings? 110 Is the frequency of audit committee disclosed? 111 Did the audit committee meet more than times in the year? 112 Did the audit committee meet more than times in the year? 113 Did the audit committee meet more than times in the year? 114 Did the audit committee meet more than times in the year? 115 Was the attendance at audit committee meetings more than 60%? 116 Was the attendance at audit committee meetings more than 80%? 117 Was the attendance at audit committee meetings 100%? 118 Does the audit committee have its terms of reference in writing? 119 Does the audit committee have authority to investigate any matter within its terms of reference? 120 Does the audit committee have access to and cooperation of management? 121 Does the audit committee meet with external auditors in the absence of company management? 122 "Does the audit committee review scope, results and effectiveness of audits?" 123 Does the audit committee meet with internal auditors at least annually? 124 Does the audit committee meet with external auditors at least annually? 125 Does the audit committee review independence of external auditors annually? 126 Is an annual review conducted of company's internal controls and risk management? 127 Does the annual report include a statement by the board on adequacy of internal controls? 128 Does the internal auditor report primarily to the chairman of the audit committee? 129 "Does the internal auditor meet standards set by recognised professional bodies (e.g., Institute of Internal Auditors)?" TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies (LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies 55 130 Does the audit committee review adequacy of internal auditor's resources? 131 Does the audit committee annually review adequacy of internal audit function? Communication 132 Does the board provide shareholders with quarterly reports on the business and prospects even if it is not mandatory? 133 Are the chairmen of all board committees existing present at the AGM to answer shareholders' questions? 134 Are external auditors present at annual general meetings to assist responses to shareholders? 135 Are separate resolutions poroposed at the AGM for each distinct issue? (i.e no resolutions are bundled together) 136 "Does the company have its annual reports on its Web site?" TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies (LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies 56 Appendix List of Tables Table 1: Summary Statistics of CG Scores for 27 of SSI 30 UPDATE companies Table 2: CG Disclosure Scores of companies winning the Best Annual Report Award Table 3: Summary Statistics of CG Disclosure Scores between some Asian countries Table 4: Scores, MTBV, P/E ratio for 27 of SSI30 UPDATE companies TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies (LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies 57 Appendix List of Figures Figure 1: Distribution of Scores Figure 2: Proportion of Independent Directors Figure 3: Disclosure of Directors‟ Details Figure 4: Chairman-CEO Separation Figure 5: Number of Board of Meetings Figure 6: Scatter plot of CG Disclosure Scores and MTBV Figure 7: Scatter plot of CG Disclosure Scores and P/E ratio TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies (LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies(LUAN.van.THAC.si).the.impact.of.corporate.governance.disclosure.on.the.financial.performance.of.SSI30.companies