TWSE Press Release
The 2016 (3rd Round) Corporate Governance Evaluation Award Ceremony Held on May 23
Publish Date︰2017/05/26 10:06
The Taiwan Stock Exchange (TWSE) and the Taipei Exchange (TPEx) co-hosted a grand award ceremony at the Taipei International Convention Center on the evening of May 23, 2017 to honor companies ranked in the top 5% of the 2016 Corporate Governance Evaluation, which included 43 TWSE-listed and 33 TPEx-listed companies. To encourage the corporations that drastically improved their performance, this year’s ceremony gave out awards to newcomers in the top 6% to 20% range who showed the most improvement, with the top 10 companies in this group receiving the award.
The TWSE noted that the results of the 2016 Corporate Governance Evaluation were announced on April 14, 2017. According to the Corporate Governance Roadmap, this is the first time the full results of all evaluated corporations were released. The Evaluation contained 103 indicators, many of which have stronger requirements beyond compliance and the scoring standards have continued to be more stringent than the previous two years, in order to gradually guide corporations to adopt better corporate governance mechanisms. Compared to the 2015 evaluation results, the list of companies in the top 5% contains 16 new TWSE-listed companies and 9 TPEx-listed companies and the replacement ratio is 37% and 27%, respectively, with those in the top 20% being 24% for TWSE and 31% for TPEx. This year’s event included a special award for the “Most Improved Award” to acknowledge and honor corporations who have been proactive in implementing good corporate governance practices.
According to the TWSE, the 2016 average earnings per share (EPS) of TWSE-listed and TPEx-listed companies ranked in the top 5% were NTD 4.28 and NTD 3.40. These figures were higher than the average EPS of rest of the TWSE-listed and TPEx-listed companies, which were NTD 2.31 and NTD 1.63. Moreover, regarding the 2016 average return on equity (ROE), TWSE-listed and TPEx-listed companies ranked in the top 5% were 12.01% and 10.45% . These figures were also better than the rest of the TWSE-listed and TPEx-listed companies, which were 5.63% and 2.78%. This suggests that companies that had better performance in this evaluation also had outstanding operating results.
This year’s award ceremony invited the Financial Supervisory Commission Chairman Ruey-Tsang Lee to give the opening speech. Additionally, representatives from competent authorities, securities institutions, the Corporate Governance Evaluation Committee, and major funds were also invited to join. Through the evaluation, the TWSE Corporate Governance Center hopes to identify role models, and to incorporate benchmark functions by honoring those companies so as to encourage listed companies to integrate corporate governance into their business culture.