FTI Consulting, Inc. (NYSE: FCN) today announced the release of its ASEAN Disclosure Index 2018, which tracks corporate disclosure practices amongst 180 publicly listed corporations in the ASEAN region: Singapore, Malaysia, Thailand, Indonesia, the Philippines and Vietnam.
This ASEAN Disclosure Index report reviews non-financial, voluntary disclosures and creates comparable benchmarks, with an eye on upcoming and anticipated disclosure regulations. It is a non-commercial, public research initiative by FTI Consulting that seeks to quantify and frame the ever-increasing standards of voluntary disclosure, in the form of an industry benchmarking report. It does not seek to be exhaustive or create a definitive measure of corporate disclosure or governance practices. It would be amiss not to mention efforts of the ASEAN Capital Markets Forum and the ASEAN Corporate Governance Scorecard which serves as a benchmarking toolkit for corporate governance for listed companies in the region.
The report splits 15 voluntary disclosure parameters into three categories (see Research Methodology on page seven) which reveals more information about performance (Performance Disclosure), board quality (Board Quality) and risk management (Risk Disclosure) and assigns weights to create a Composite Disclosure score, that has been applied to 180 ASEAN companies listed on seven stock exchanges across six different jurisdictions. Suggestions to improve the methodology are invited and will be incorporated in future editions of the report. The author of the report has reviewed 2017 EU regulations on non-financial disclosure, ESG disclosure demanded by institutional investors and existing corporate governance policies in the region prior to the preparation of this report.
FTI Consulting’s latest ASEAN Disclosure Index reveals that companies in the region overall scored well on corporate disclosure, with an average Composite Disclosure score of 7.8 out of a maximum of 10 and an average Board Quality score of 3 out of a maximum of 4. However, many companies in the region could improve their risk disclosure standards, with an average Risk Disclosure score of 3.8 out of a maximum of 5 for all 180 companies.
Read and download the full report from FTI Consulting.