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Lunch Cum Seminar: Corporate Governance in Hong Kong 「香港企業管治」午餐暨研討會

Lunch Cum Seminar: Corporate Governance in Hong Kong 「香港企業管治」午餐暨研討會. 30 January 2007. Co-organized by 合辦機構 : . HKIoD Corporate Governance Scorecard Project. Research Committee Coordinator Prof. Stephen Y L Cheung (City University of Hong Kong) Members

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Lunch Cum Seminar: Corporate Governance in Hong Kong 「香港企業管治」午餐暨研討會

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  1. Lunch Cum Seminar: Corporate Governance in Hong Kong「香港企業管治」午餐暨研討會 30 January 2007 Co-organized by合辦機構:

  2. HKIoD Corporate Governance Scorecard Project Research Committee • Coordinator • Prof. Stephen Y L Cheung (City University of Hong Kong) • Members • Dr. J. Thomas Connelly (Chulalongkorn University) • Dr. Piman Limpaphayom (Chulalongkorn University) • Ms. Ping Jiang (City University of Hong Kong) • Research Assistants • Mr. Andy Lau (City University of Hong Kong) • Mr. Chung Cheong Wing(City University of Hong Kong) • Mr. Ho Ka Ho (City University of Hong Kong) • Ms. Jan Chan (City University of Hong Kong) • Ms. Louise Zhang (City University of Hong Kong) • Mr. Patrick Tsang (City University of Hong Kong)

  3. Research Methodologies I • Survey results based on publicly available information • HSI, HSHKCI, HSCCI, and HSCEI constituent stocks • Based on information disclosed in 2005 • 174 major companies are covered

  4. Surveyed Companies I (as at 12/2005)

  5. Surveyed Companies II (as at 12/2005)

  6. Surveyed Companies III(as at 12/2005)

  7. Objectives of Corporate Scorecard for Hong Kong Listed Companies Hopefully

  8. 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 full information

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

  10. Scorecard Followed The Five OECD Corporate Governance Principle • OECD is internationally recognized • HKEx guidelines comprehensively covered • 174 public companies surveyed

  11. Correlation=0.05, Significant at 1% level Positive Correlation between Good Corporate Governance and Company Valuation

  12. Market Valuation by Corporate Governance Entry Quartile

  13. Improvement of CGI Compared with 2002 Mean of CGI increased by 16.14% compared with year 2002.

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

  15. Corporate Governance Performance by Industries

  16. Corporate Governance Performance by Categories 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 (公開與透明度) E: Board Responsibilities (董事會的責任)

  17. Rights of Shareholders (股東的權利) Improvements: • Improve the quality of Notice to Call Shareholders Meeting • Attendance of all Board members, Esp. Board Committee Chairs 92.63 71.47 49.19

  18. B. Equitable Treatment of Shareholders(對股東的公平待遇 ) Improvements: • Allow minority shareholders to influence the Board • To use cumulative voting in the election of board members • To facilitate voting by proxy 95.16 71.01 51.61

  19. C. Role of Stakeholders in Corporate Governance(利益關係團體在公司治理中扮演的角色) Improvements: • Disclose more details on the role of supplier/business partner • Give more details on the environment issue in its public communication 95.71 40.21 8.1

  20. D.Disclosure and Transparency(公開與透明化 ) Improvements: • The information in website’s • Shareholding structure • Organization structure • To Disclose the management’s shareholding • Communication with public • Analyst briefing (s) • Press conference (s)/ press briefing 98.77 89.47 72.71

  21. E. Board Responsibilities(董事會的責任 ) Improvements: • Separate the role of the chairman and CEO • A set of writing the code of ethics • Setting up the Nomination Committee • Role and responsibilities • Performance and meeting 98.99 69.50 31.18

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

  23. Ten Best Performing Companies in Corporate Governance Score (by alphabetical order) • BOC Hong Kong (2388) • CLP Hldgs (2) • HKEX(388) • HSBC Hldgs (5) • Hang Seng Bank (11) • Hysan Development (14) • Li & Fung (494) • MTR Corporation (66) • Shenzhenexpress (548) • Solomon Systech (2878)

  24. ~ END ~

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