Only about 17 percent of listed companies comply with information disclosure regulations, lower than the figure in 2016 (Photo: VNA) Hanoi (VNA) - Only about 17percent of listed companies comply with information disclosure regulations,lower than the figure in 2016, according to the Vietnam Association ofFinancial Executives (VAFE).
The figure was reported by VAFE in its latestsurvey on companies that are listed on both the Ho Chi Minh and Hanoi stockexchanges over their compliance of information disclosure regulations.
Information disclosure is an obligation thatlisted companies, whose shares are traded on the two local exchanges, mustfulfill to prove their transparency and accountability towards investors andshareholders.
The latest VAFE survey consisted of 672 firmswhose shares were traded on the HCM and Hanoi stock exchanges between July 1,2016 and June 30, 2017.
According to VAFE, the latest result wasslightly lower than the number in 2016 (18.47 percent), but higher than between2012 and 2015.
Of the surveyed companies, 22 firms or threepercent of the total were large-cap companies, 140 companies or 21 percent weremid-cap, and 76 percent were small- and micro-cap firms.
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Large-cap companies have market capitalisationof at least 10 trillion VND (444.4 million USD), the number for mid-cap firmsis 1 trillion VND, and the market value of small- and micro-cap firms is atmost 100 billion VND.
According to the survey, large-cap firms had thehighest percentage of companies complying with information disclosureregulations (50 percent), while the group of small- and micro-cap firms had thelowest percentage (12.35 percent).
VAFE reported that most violations were delayedrelease of financial reports and late announcement of annual shareholdermeetings. Inappropriate compilation of financial reports was also a commonviolation among surveyed firms, committed by 30 percent of surveyed firms.
Specifically, the fourth-quarter earnings-reportseason saw the highest number of inappropriate financial reports (242 companiesor 36 percent of the total), followed by the third-quarter earnings-reportseason (219 companies or 33 percent).-VNA
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