The Ha Noi Stock Exchange has honoured the top 30 listed companies recognised as being most transparent in the 2015-16 period.

The Ha Noi Stock Exchange has honoured the top 30 listed companies recognised as being most transparent in the 2015-16 period.

This is one activity in the wide-ranging programme on corporate governance which is aimed at upgrading the status of the local securities market.

This is the fourth consecutive year the exchange has evaluated the quality of corporate governance of listed companies on the Ha Noi bourse, with the aim of raising the enforcement of good practices on corporate governance and enhancing investor confidence in companies and markets.

A total of 344 enterprises have been evaluated using five criteria, including the rights of shareholders, equal treatment for shareholders, the roles stakeholders play, the disclosure of transparent information and the responsibilities shouldered by managing boards.

The result has shown that the quality of disclosure by listed enterprises slightly improved over the previous year, with the average weighted score of 51.3 per cent, a 0.5-per-cent higher score than last year, though the number of companies that need improving remains large.

Only 2.1 per cent of companies were awarded the “excellent” score; 17.7 per cent rated “good”; 41.3 per cent rated “average” and 39 per cent needed “improving”.

Results indicated that large companies had better disclosure compliance, while half of the 30 most transparent enterprises belonged to the top 30 largest companies by market capitalisation on Ha Noi’s exchange. Companies having State capital and foreign investment also had better scores.

Three business sectors were found to have the best corporate governance, including finance, transportation and warehousing, and healthcare. On the other end of the spectrum, information and communication, real estate and construction scored the lowest. — VNS