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4.1 Introduction
According to the chapter 3, this chapter will provide empirical results, analysis
and interpretation of the results. The structure of this chapter is as followings: section
4.2 will provide a description regarding the data and the screening process; section 4.3
disclosures of the sample companies; section 4.4 will provide a analysis regarding the
descriptive statistics of the data; section 4.5 will provide an result and analysis from
the correlation analysis; finally, section 4.6 will provide an result and analysis from
The sample companies of this research are the companies that listed in the main
board of Hong Kong Stock Exchange between 2007 and 2009 as a basis. Afterward,
64 listed companies are selected preliminarily in accordance with the Properties and
infrastructure, building materials, etc, and companies that the main business are
outside Hong Kong, are deducted. Finally, the valid samples companies are 15 for this
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Less: non-property nature companies 19
(E.g. construction, infrastructure, building
materials, etc)
Less: companies which main business outside HK 30
Valid samples for this research 15
The main research data is the CGDscore and its 5 determinants (BODsize,
INEDproportion, FIRMsize, LEVERGE and ROA) of the sample companies. For the
and LEVERGE are fully sourced from the annual reports while the ROA is sourced
data used to calculate the CGDscore are fully sourced from the information disclosed
in the annual reports only. That means the information disclosed on the other media,
disclosure (CGDscore). The assessment items contained in the score card are
extracted from the extracted from the Appendix 23 of the Listing Rules issued by
HKEx and the guide regarding corporate governance disclosure in annual reports
issued by HKSA in 2001. The score card contained 2 types of items, mandatory and
voluntary, and divided into 12 categories. The scoring standard has been already
discussed in section 3.5.1. For the 15 sample companies, the summary results of the
CG disclosures disclosed in the annual reports are presented in Table 4.2 below:
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Disclosure categories Type No. of Percentag
s compani e
es (%)
(1) Board structure and functioning M 15 100.00%
(2) Remuneration committee M 15 100.00%
(3) Nomination committee M 14 93.33%
(4) Audit committee M 15 100.00%
(5) External autidors M 15 100.00%
(6) Capital Structure M 15 100.00%
(7) Management disscussion and analysis M 15 100.00%
(8) Corporate Social Responsibility V 15 100.00%
(9) Share interests of senior management V 1 6.67%
(10) Shareholders' rights V 14 93.33%
(11) Investor relations V 15 100.00%
(12) Internal control V 15 100.00%
According to the Table 4.2, it shows that the major parts of companies are
complied with the mandatory disclosure required by HKICPA and HKEx while only
one mandatory disclosure is not complied by all sample companies. For the voluntary
disclosure, there are fewer companies that are willing to disclose voluntary CG
disclosures.
In order to protect the public has right to know, the HKICPA and HKEx should
annual reports, and should consider why some of the company can ignore the
requirements, not to provide such mandatory disclosure. On the other hand, the
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HKICPA and HKEx should also pay attention on why some of the companies are
willing to disclose voluntary CG disclosures in the annual reports even though such
voluntary CG disclosures are not required to disclose necessarily, this may help to
future.
The descriptive statistics of the variables by using mean as a basis for each of the
Table 4.3 shows the trend of each variable between 3 years, 2007 and 2009.
Firstly, the mean of BODsize is increasing from 11.73 to 12.2. This might indicate
that the Hong Kong listed property companies seem to expand the manpower of the
board in order to gather more diverse opinions for decision-making. Secondly, the
mean of INEDproportion is also increased from 36% to 37%. This might indicate that
the Hong Kong listed property companies seem to improve the independence of the