The more transparent information is, the better business performance is

Hanoi Stock Exchange: Ready for steps of consolidation

The score of information disclosure and transparency was closely connected with earnings

The programme on quality assessment of information disclosure and transparency in 2020 selected 278 large-cap firms, an increase of 41 enterprises (surged 17.3% year-on-year). These are firms registered transactions before April 20, 2019.

Average disclosure and transparency scores of large-cap firms on HNX in 2019-2020 reached 58.01%, and 219 of 278 large-cap firms hadtheir score higher than the average level. The score of the large-cap firms on UPCoM large reached 58.42%.

According to the HNX, large-cap firms further focus on implementing the compliance criteria with a score of 62.08%. Meanwhile, conventional criteria arestill low and less than the average level, reaching 33.75%.

Firms with higher State ownership performed better in disclosing their information.

Notably, large-cap firms with the chairman of the board of directors not acting as general director had anaverage result of information disclosure and transparency of 58.75%, better than those with chairmen also as the firm’s CEO of 53.48%.

The average score of large-cap firms that set up sub-boards of directors under the provisions of Circular 155 reached 64.13%, meanwhile the score of large-cap firms without sub-boardsof directors reached 57.61%. In addition, average score of the large-cap firms that had internal rules of corporate governance was60.82%, higher than those without the rules of 55.36%.

According to HNX, the score of information disclosure and transparency was closely connected with earnings, which was evaluated upon firms’ return-on-equity (ROE) and return-on-asset (ROA) ratios. A ROA growth rate of 0.1 per cent and ROE growth rate of 0.12 per cent mean the firm’s score gained 1 per cent.This is good evidence to encourage and boost firms to better comply with regulations and practices on information disclosure and transparency.