No 1113 Proposal on the 2015 audited financial statements signed

1 THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY (CSR) ON THE COMPANY’S FINANCIAL PERFORMANCE BY CHU MAI LY Graduation Project Submitted to the Department of Business Studies, HELP University College, in Partial Fulfilment of the Requirements for the Degree of Bachelor of Business (Accounting) Hons Octorber 2011 2 DECLARATION OF ORIGINALITY AND WORD COUNT I hereby declare that the graduation project is based on my original work except for quotations and citations which have been duly acknowledged. I also declare that it has not been previously or concurrently submitted for any other course/degree at HELP University College or other institutions. The word count is 9,875 words. _____________________ NAME OF CANDIDATE Date: 3 Acknowledgement This project would not have been made possible without the assistance, support and encouragement of many people. I wish to take this opportunity to thank all the people who have helped me during the time of completing the dissertation. I would like to express gratitude towards Dr. Pham Duc Hieu and Dr. Le Van Lien and to Ms Shumathi for their support and guidance. I would also thank some my friends for their financial support for this project. 4 THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY (CSR) ON THE COMPANY’S FINANCIAL PERFORMANCE By CHU MAI LY Octorber 2011 Supervisor: Dr. PHAM DUC HIEU Abstract Does CSR impact on firms' profits? CSR will lead to increase or decrease of financial performance of the firms. Firms face complex market conditions, external effects and asymmetric information which may lead to market failure and sub‐optimal profits. In the literature, market failures could build the theoretical base for corporate social responsibility (CSR) implementation by firms. In fact, firms in competitive markets could use CSR as a management tool to gain more profits through diversification. Further, the implementation of CSR requires the detection of future trends and developments which makes the firms more stable to sudden events. Therefore, CSR may offer firms the opportunity to gain higher profits than they would get without CSR. Alternatively, CSR could lead to higher costs and thus to worse financial performance. Many studies are taken in which the method of study is quantitative or using the KLD data base. In this study, I will examine the relationship of CSR and financial performance in a different view and different method. This study makes clear relationship in the aspect of identifying the costs and benefits of CRS, how those costs and benefits will affect the accounting earnings or profits of the firms. Those issues will be improved by the case of Vedan and Miwon in Vietnam. 5 TABLE OF CONTENTS Page Declaration of Originality and word count ii Acknowledgement iii Abstract iv Table of Content v CHAPTER 1 INTRODUCTION 7 1.1 Background of study 8 1.2 Statement of purpose 8 1.3 Structure of study 9 Chapter 2 LITERATURE REVIEW 10 2.1 The history of CSR 10 2.2 The definition of CSR 11 2.3 The term of CSR 13 2.4 Theories describing the CSR/financial performance relationship 15 2.4.1 The theory suggest positive relationship 16 2.4.2 Theory suggest a negative Ha Noi, dated 13th 2016 No: 1113/TTr-HĐQT PROPOSAL Re: The approval of 2015 Audited Consolidated and Separate Financial Statements of Bao Viet Holdings To: 2016 Baoviet Holdings Annual General Meeting of Shareholders Pursuant to: - Law on Enterprises No 68/2014/QH13 dated 26th November 2014; - The current Charter of Bao Viet Holdings; - The 2015 Audited Consolidated and Separate Financial Statements of Bao Viet Holdings audited by Ernst & Young Vietnam Limited; The Board of Directors (“BOD”) of Baoviet Holdings (“BVH”) respectfully submit to the shareholders with the 2015 Audited Consolidated and Separate Financial Statements of BVH, including: - BOD’s Report; - External Auditors’ Report of Consolidated Financial Satements Ref.60780870/17122728-HN; - External Auditor’ Report of Seperate Financial Statements Ref.60780870/17880303; - The Consolidated and Separate Balance Sheets; - The Consolidated and Separate Income Statements; - The Consolidated and Separate Cash flow Statements; - Notes to the Consolidated and Separate Financial Statements General information on the Audited Consolidated and Separate Financial Statements in 2015 is as follows: I Audited Consolidated Financial Statements of 2015: Consolidated Balance Sheet Unit: millions (VND) No Items 31st December 2015 31st December 2014 I Total Assets 58,552,564 47,568,465 Current Assets 22,163,065 20,746,692 Non-current Assets 36,389,499 26,821,773 No Items II Total liabilities owner’ equity 31st December 2015 and 31st December 2014 58,552,564 47,568,465 Total liabilities 45,354,373 34,751,644 Owner’ equity 13,198,191 12,816,821 Consolidated Income Statement Unit: millions (VND) No Items For the year ended 31st December 2015 For the year ended 31st December 2014 20,789,190 19,050,275 I Total Revenues Revenue activities from insurance 16,512,791 14,069,773 Revenue activities from financial 3,792,751 3,679,558 Revenue activities from banking - 756,312 Revenue from other activities 483,648 544,632 II Profit before tax 1,468,892 1,627,305 III Profit after tax 1,174,931 1,331,269 II Audited Separate Financial Statements of 2015: Balance Sheet Unit: millions (VND) No Items I Total Assets 31st December 2015 31st December 2014 12,156,246 11,728,634 Current Assets 2,710,116 3,934,261 Non-current Assets 9,446,130 7,794,373 II Total liabilities owner’ equity 12,156,246 11,728,634 Total liabilities 397,739 190,001 Owner’ equity 11,758,507 11,538,633 and 2 Income Statement Unit millions (VND) No Items For the year ended 31st December 2015 For the year ended 31st December 2014 1,316,771 1,340,155 1,196,735 1,261,602 120,036 78,553 I Total Revenues Revenue activities Revenue from other activities II Profit before tax 1,020,693 1,175,455 III Profit after tax 1,002,371 1,121,350 from financial The above statements were disclosed as regulated and fully published on the website of BVH at www.baoviet.com.vn The proposal of the Audited Consolidated and Separate Financial Statements of BVH in 2015 is for shareholders to review and approve Respectfully submitted./ Achieves: - - As above; - BOD, SB; - CEO; - For filling: Admin, General Secretary Dept ON BEHALF OF THE BOARD OF DIRECTORS CHAIRMAN (Signed and sealed) Dao Dinh Thi EFFECTS OF RECOGNITION VERSUS DISCLOSURE ON THE STRUCTURE AND FINANCIAL REPORTING OF SHARE BASED PAYMENTS By Preeti Choudhary Fuqua School of Business Duke University Date:_____________________________ Approved: _________________________________ Katherine Schipper, Supervisor _________________________________ Dhananjay Nanda _________________________________ Mohan Venkatachalam _________________________________ Kevin Weinfurt Dissertation submitted in partial fulfillment of the requirements for the degree of Doctoral of Philosophy in the Fuqua School of Business of Duke University 2008 UMI Number: 3297727 3297727 2008 UMI Microform Copyright All rights reserved. This microform edition is protected against unauthorized copying under Title 17, United States Code. ProQuest Information and Learning Company 300 North Zeeb Road P.O. Box 1346 Ann Arbor, MI 48106-1346 by ProQuest Information and Learning Company. Copyright by Preeti Choudhary 2008 ABSTRACT EFFECTS OF RECOGNITION VERSUS DISCLOSURE ON THE STRUCTURE AND FINANCIAL REPORTING OF SHARE BASED PAYMENTS By Preeti Choudhary Fuqua School of Business Duke University Date:_____________________________ Approved: _________________________________ Katherine Schipper, Supervisor _________________________________ Dhananjay Nanda _________________________________ Mohan Venkatachalam _________________________________ Kevin Weinfurt An abstract of a dissertation submitted in partial Fulfillment of the requirements for the degree of Doctoral of Philosophy in the Fuqua School of Business of Duke University 2008 iv Abstract I examine whether financial statement preparers (managers and auditors) treat recognized versus disclosed fair value of option compensation differently. Recognition refers to items that appear on the face of financial statements and that are included in subtotal figures that appear in the summary accounts; disclosure refers to items that appear in words and amounts in only the financial statement footnotes. I find that fair value recognition of option compensation is likely to have a significant impact on net income. Firms in my sample granted options amounting to a median fair value of 7% of profits in 1996 and 11% of profits in 2004. I compare the terms of option grants and the properties of fair value estimation under a disclosure reporting regime to terms and properties under a recognition regime. Under a fair value recognition regime, I find firms reduce/eliminate option grants across all levels of employees, reduce the statutory length of options, and substitute restricted stock and bonuses for option compensation. The fair value reduction in option grants is on average 9% (0.4%) of absolute net income. In contrast, under a fair value disclosure regime, option compensation was not reduced. I also find that firms increase the bias in three inputs to fair value option estimation: volatility, dividend, and interest. This increase amounts to 4%, 2%, and 0.3% of fair value cost. Mandatory recognition firms also display increased dividend and interest input THE GOVERNMENT - THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness No 156/2016/ND-CP Hanoi, November 21, 2016 DECREE ON AMENDMENTS TO THE GOVERNMENT'S DECREE NO 27/2007/ND-CP DATED FEBRUARY 23, 2007 ON E-TRANSACTIONS IN FINANCIAL OPERATIONS Pursuant to the Law on Government organization dated June 19, 2015; Pursuant to the Law on Electronic transaction dated November 29, 2005; At the request of the Minister of Finance; The Government promulgates a Decree on amendments to the Government's Decree No 27/2007/ND-CP dated February 23, 2007 on e-transactions in financial operations Article Article 14 of Government's Decree No 27/2007/ND-CP dated February 23, 2007 on e-transactions in financial operations shall be amended as follows: “Article 14 Use of digital signatures Digital certificates that are used in digital signatures in financial operations between organizations, individuals and financial authorities: Digital certificates issued by providers of public authentication of digital signatures; digital certificates issued by providers of authentication of digital signatures serving the agencies of the political system; foreign digital certificates that are accredited; foreign digital certificates that are accepted in Vietnam; foreign digital certificates that are accepted in international transactions Conditions, scope and eligible entities of each digital certificate in financial operations shall be specified in accordance with law on digital signatures and authentication of digital signatures Financial authorities entering into e-transactions shall be legally bounded by international treaty(ies) on digital signatures to which the Socialist Republic of Vietnam is a signatory The Ministry of Finance shall provide guidelines for e-transactions in financial activities under its management for which digital signatures are compulsory.” Article Effect This Decree comes into force January 10, 2017 Clause Article 3, Article 13, Point g and Point h Clause Article 16 of Decree No 27/2007/ND-CP shall be annulled Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, Presidents of the People’s Committees of provinces and central-affiliated cities, and relevant organizations and individuals shall implement this Decree./ ON BEHALF OF THE GOVERNMENT PRIME MINISTER Nguyen Xuan Phuc This translation is made by LawSoft and for reference purposes only Its copyright is owned by LawSoft and protected under Clause 2, Article 14 of the Law on Intellectual Property.Your comments are always welcomed ... published on the website of BVH at www.baoviet.com.vn The proposal of the Audited Consolidated and Separate Financial Statements of BVH in 2015 is for shareholders to review and approve Respectfully... Profit after tax 1,174,931 1,331,269 II Audited Separate Financial Statements of 2015: Balance Sheet Unit: millions (VND) No Items I Total Assets 31st December 2015 31st December 2014 12,156,246 11,728,634... from other activities II Profit before tax 1,020,693 1,175,455 III Profit after tax 1,002,371 1,121,350 from financial The above statements were disclosed as regulated and fully published on the