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38-710: Other key stakeholders include the World Federation of Exchanges (WFE), and the International Organization of Securities Commissions (IOSCO). The SSE provides a multi-stakeholder learning platform for stock exchanges, investors, regulators, and companies. The first meeting of the SSE was opened by UN Secretary-General Ban Ki-moon in New York City in 2009. Subsequently, the SSE began holding "Global Dialogues" every two years, starting with

76-410: A definition of corporate transparency in its Gamma methodology aimed at analysis and assessment of corporate governance . As a part of this work, Standard & Poor's Governance Services publishes a transparency index which calculates the average score for the largest public companies in various countries. Corporations may be transparent to investors, the public at large, and to customers. Opening up

114-715: A growing impact on capital markets, investors and corporations. COP21 set the stage for a new generation of global climate change policies that will influence markets for years to come. This peer-to-peer CEO summit provided a platform for addressing climate challenges and opportunities and sharing views on the path forward. Hosted by Mirova and Natixis , this United Nations event welcomed an exclusive group of C-level participants from stock exchanges, institutional investors, and listed companies joining public policy leaders from international organizations, national governments and regulatory bodies. World Federation of Exchanges The World Federation of Exchanges ( WFE ), formerly

152-564: A partnership member of the Federation of Euro-Asian Stock Exchanges . The Sustainable Stock Exchanges Global Dialogues are held every two years as the SSE initiative's flagship event. They provide a unique, high-level platform to explore how the world's exchanges can work together with investors, regulators and companies to create more sustainable capital markets. They are designed to analyze, promote and foster communication on stock exchanges' sustainability-related activities. They demonstrate

190-513: A unique platform for CEO's of stock exchanges, listed companies and institutional investors, alongside high-level policy makers and regulators, to demonstrate leadership and understanding of the sustainable development opportunities and challenges facing capital markets today. Hosted by Nasdaq Helsinki, the SSE Regional Dialogue welcomed more than 100 participants from across Nordic markets. A high-level policy dialogue took place in

228-610: Is assessed using Information Disclosure and Transparency Ranking System (IDTRS) launched in 2003 by Securities and Futures Institute. Whole process is on voluntary basis with evaluation executed annually in two-stage process where the ranking committee and companies with possibility of expressing their opinions participate. Capital markets in Taiwan evolved over the recent decades from ones with insufficient protection of shareholders and stock market instability to markets with plausible transparency practices. Establishing IDTRS has increased

266-560: Is held on the eve of the launch of the Sustainable Development Goals (SDGs) to bring together capital market leaders to discuss the role they can play in supporting the achievement of these goals. This high-level dialogue included CEOs from SSE Partner Exchanges, institutional investors and listed companies, joining public policy leaders from international organizations and national governments. All participants had an opportunity to speak and engage with their peers on

304-500: The Federation Internationale des Bourses de Valeurs ( FIBV ), or International Federation of Stock Exchanges, is the trade association of publicly regulated stock , futures , and options exchanges , as well as central counterparties (CCPs). It represents over 250 market infrastructure providers, including standalone CCPs that are not part of exchange groups. Its market operators are responsible for operating

342-637: The European Commission launched a public consultation on the review of the NFRD. In 2008, researchers found that value maximization might not be the ultimate goal of Chinese listed companies as a result of the Chinese government being the major shareholder of state-owned enterprises (SOE). Comparing listed companies in different markets, it seems that those with sound corporate governance practices tend to showcase relatively good performance, which

380-811: The UN Global Compact , the OECD guidelines for multinational enterprises or ISO 26000. Despite enclosed suggestions for guidelines, none is referred to by more than 10% of companies. To better understand the situation, companies are expected to describe their business model in relation to sustainability and strategic risks. This might not be reality as only nearly a half of companies mentioned at least one strategic risk related to sustainability and only 7.2% further described how those risks were being addressed in 2019. The most frequently listed risks where related to climate change (24.9%), environmental challenges (23.9%) and labour issues (23.8%). As of 20 February 2020,

418-845: The 2010 SSE Global Dialogue in Xiamen , China, which took place as part of the UNCTAD World Investment Forum. The second SSE Global Dialogue was held in 2012 in Rio de Janeiro , Brazil, as part of the Global Compact Corporate Sustainability Forum. At the SSE 2012 Global Dialogue a new dimension to the Initiative was launched, with the five participating stock exchanges making a voluntary public commitment to sustainability in their markets, thereby becoming an SSE Partner Exchange. Since

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456-597: The Chinese stock market. It was found that QFIIs have greater control over state shareholders in state-owned companies than domestic mutual funds and are more prone to act as unbiased monitoring body. Institutional ownership has positive effect on both, corporate governance transparency and accounting information transparency. However, there is not sufficient amount of evidence to support the claim that higher levels of corporate transparency lead to higher levels of institutional ownership in China. Corporate transparency in Taiwan

494-592: The Regional Dialogue, leaders of the Hanoi, Hochiminh and Malaysia Stock Exchanges announced their public Commitments to join the SSE initiative as SSE Partner Exchanges. The SSE Regional Dialogue: Nordic Countries began on 4 November 2015. The Sustainable Stock Exchanges Regional Dialogue: Nordic Countries took place in Helsinki, Finland. The SSE Regional Dialogue, the first of its kind in the region, offered

532-404: The SSE welcomes participation from securities regulators, investors, companies and other key stakeholders within its Consultative Group. The PRI has an SSE Investor Working Group that has been actively engaged since 2009. The SSE's flagship event is its biennial Global Dialogues and it continues to develop new work streams to address specific stakeholder requests. On 17 October 2023, the SSE became

570-603: The SSE, hosted by the Colombian Securities Exchange (BVC), and sponsored by the Latin American Sustainable Investment Forum (LatinSIF). The SSE Regional Dialogue: South East Asia was held on 18 May 2015. The Sustainable Stock Exchanges Regional Dialogue South East Asia kicked off in the heart of Bangkok, Thailand with the participation of more than 150 delegates from 13 countries. The SSE Regional Dialogue, as

608-526: The United Nations Palais de Nations . The focus of this event was "Capital Markets for Sustainable Development." It featured over 30 high-level roundtable speakers, consisting of CEOs and Chairmen of Stock Exchanges, investors, companies and standard setters, as well as capital market regulators and policymakers. This event was held as part of the four-day UNCTAD biennial World Investment Forum from October 13 to 17. The 2012 Global Dialogue

646-619: The United States. Countries with multi-party legislatures are associated with higher levels of corporate transparency. Furthermore, when a country transitions to multi-party legislature, opacity is expected to decrease. Comparing democracies and authoritarian regimes, we can expect that firms are more transparent in democratic countries. Levels of corporate transparency are decreasing as we go from democracies to countries with semi-competitive authoritarian regimes. Lastly, firms in countries with non-competitive authoritarian regimes display

684-474: The corporation. Recent research suggests there are three primary dimensions of corporate transparency: information disclosure, clarity, and accuracy. To increment transparency, corporations infuse greater disclosure, clarity, and accuracy into their communications with stakeholders. For example, governance decisions to voluntarily share information related to the firm's ecological impact with environmental activists indicate disclosure; decisions to actively limit

722-518: The critical question of how markets can support sustainable development. The SSE Leaders Luncheon helped to set the agenda for how capital market actors can support the SDGs in the coming years. From sustainability reporting and mobilizing finance to gender equality and global partnerships, stock markets have an important role to play in promoting good corporate practices and facilitating investment in sustainable development. The SSE Leaders Luncheon: Climate

760-859: The customer support channels may mean using a feedback tool which allows users to publicly vote on new developments, having an open internet forum , or actively responding to social media questions. Standards concerning corporate transparency in European Union are scrutinized under Directive 2014/95/EU, referred to as Non-Financial Reporting Directive (NFRD). Under this legislation companies have to disclose information regarding employed practices related to environmental protection, social responsibility and treatment of employees, respect for human rights, anti-corruption and bribery and diversity on company boards (in terms of age, gender, educational and professional background). By 2018, companies are required to include non-financial statements in their annual reports. It

798-653: The event, several other leading exchanges have joined the group of SSE Partner Exchanges. UNCTAD, the UN Global Compact, the PRI and UNEP-FI, as the core organizer of the SSE Initiative, also committed to supporting stock exchanges in this effort. The SSE initiative invites exchanges globally to become Partner Stock Exchange within the SSE by making a voluntary public commitment to promote improved ESG disclosure and performance among listed companies. In addition,

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836-447: The extent to which a corporation's actions are observable by outsiders. This is a consequence of regulation, local norms, and the set of information, privacy, and business policies concerning corporate decision-making and operations openness to employees, stakeholders , shareholders and the general public. From the perspective of outsiders, transparency can be defined simply as the perceived quality of intentionally shared information from

874-435: The firm's objectives. High levels of corporate transparency can have positive impact on companies. It is known that high levels of corporate transparency improve investment efficiency and resource allocation . Companies with great corporate transparency are expected to enjoy lower cost of external financing resulting in more opportunities for growth. Next, transparency can lead to better reflection of company specifications in

912-634: The first of its kind in South East Asia, offered a unique platform for CEOs of stock exchanges, listed companies and institutional investors, along with high-level policymakers and regulators, to demonstrate leadership and understanding of the sustainable development opportunities and challenges facing capital markets today. Afternoon workshop sessions were made possible through the support of collaborating partners GRI ( Global Reporting Initiative ), CDSB (Climate Disclosure Standards Board), ASRIA (Asia Investment Group on Climate Change) and MSCI. During

950-618: The key components of the financial world. It was founded in 1961 and is based in London , United Kingdom . To be a member, exchanges must adhere to the WFE Membership Criteria. Candidates are selected following a peer review. As of October 2023, the WFE had 69 members: Affiliates as of October 2023 include the following: Corporate transparency Corporate transparency describes

988-672: The level of corporate transparency and information disclosure by Taiwanese companies. Their motivation is driven by the likelihood of their transparency ranking being made public and possible consequences of such action. Disclosing more information mediates information asymmetry , prevents moral hazard and can lead to higher liquidity and lower cost of capital . Ultimately, IDTRS has been successful in stimulating companies to disclose more information, increasing firm value and improving quality of forecasts of firm's performance in stock market. The United Kingdom government undertook consultation exercises in 2020 concerning proposed improvements to

1026-967: The morning of 4 November, followed in the afternoon by practical workshops to assist investors, companies and other capital market stakeholders with integrating sustainable development into investment and business strategies. Eight new exchanges joined the SSE initiative at the SSE Regional Dialogue: Nordic Countries. The SSE partners with exchanges, investors, and other capital market leaders worldwide to bring capital market players together to identify, discuss and take collective action on common sustainability issues alongside key events and UN summits. These high-level events bring exchanges together with policy makers, regulators, investors, companies and other relevant stakeholders for candid conversations aimed at collectively problem solving key issues, challenges and opportunities facing capital markets today. The SSE Leaders Luncheon: SDGs

1064-466: The progress of stock exchanges while highlighting the challenges and opportunities ahead. Another core purpose is to facilitate the sharing of experiences that encourage exchanges and their regulators to enhance listing rules and regulatory initiatives to include the disclosure of sustainability strategies by listed companies. The 2014 Global Dialogue was held in Geneva , Switzerland, on 14 October 2014, at

1102-520: The public and bring exchanges together with policymakers, regulators, investors, companies and other relevant stakeholders. For SSE Regional Dialogue: LatAm & Caribbean, Latin America's four largest stock exchanges gathered in Colombia for the first Sustainable Stock Exchanges (SSE) Regional Dialogue: LatAm & Caribbean. The regional version of the flagship SSE Global Dialogue was facilitated by

1140-717: The quality and value of financial information on the UK companies register , the powers of the registrar and a ban on companies having corporate directors . It then issued a white paper on Corporate Transparency and Register Reform in February 2022, which sought to reflect the government's responses to these consultations. The Corporate Transparency Act, part of the National Defense Authorization Act for Fiscal Year 2021 , introduced "beneficial ownership information reporting requirements" for companies in

1178-620: The stock prices and greater extent of monitoring by outside investors. Internally, corporate transparency has been shown to increase employee trust in the organization. Among other benefits of corporate transparency are lower transaction costs and greater stock liquidity associated with lower cost of capital which in return correlates with an increase in the firm value. On the other hand, low levels of corporate transparency are linked with moral hazard extracting firm resources for private benefit. This causes principal–agent problem and worsens firm performance. Standard & Poor's has included

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1216-438: The use of technical terminology , fine print , or complicated mathematical notations in the firm's correspondence with suppliers and customers indicate clarity; and decisions to not bias, embellish, or otherwise distort known facts in the firm's communications with investors indicate accuracy. The strategic management of transparency, therefore, involves intentional modifications in disclosure, clarity, and accuracy to accomplish

1254-783: The world. The 2009 Global Dialogue was held on 2 November 2009. More than 100 top executives from around the world met at UN Headquarters in New York to explore how the world's exchanges can work together with investors, regulators, and companies to enhance corporate transparency , and ultimately performance, on environmental, social and corporate governance (ESG) issues and encourage responsible long-term approaches to investment. The SSE partners with exchanges, investors and other capital market leaders worldwide to bring capital market players together to identify, discuss and take collective action on common sustainability issues pertinent to their region or globally. These high-level events are open to

1292-515: Was found that 60% companies disclose their non-financial information in their annual reports in contrast to 40% favoring a separate document in 2019. Businesses with an obligation to publish such information are large public-interest companies with more than 500 employees, which amounts to approximately 6000 companies across European Union. Companies enjoy great flexibility how to disclose relevant information as they can either use international, European or national guidelines. For instance, they can use

1330-660: Was held in December 2015. World leaders gathered for the 2015 United Nations Climate Change Conference (COP21) to complete a new global agreement. This summit caps a year that has seen numerous momentous international breakthroughs, from the G20 pact on climate policy to the China-USA Joint Presidential Announcement on Climate Change. As climate plays an increasingly prominent role in the development of investment policy and regulation, it also has

1368-542: Was held on 18 June 2012 in Rio de Janeiro, Brazil. It focused on the role of the world's stock exchanges in encouraging responsible, long-term investment and creating sustainable financial markets. The event took place in the days leading up to the United Nations Conference on Sustainable Development (Rio+20) as part of the UN Global Compact ’s Corporate Sustainability Forum (CSF). The 2010 Global Dialogue

1406-507: Was held on 8 September 2010 in Xiamen , China. It took place against the backdrop of UNCTAD's World Investment Forum and the China International Fair for Investment and Trade (CIFIT) which brought together 1,500 leaders from various stakeholder groups including governments, businesses, international organizations, investment promotion agencies, civil society, and international investment experts and practitioners from across

1444-573: Was in contrast to the situation in the Chinese market. It was believed that implementation of new reforms would result in higher corporate transparency of Chinese firms. In 2002, the China Securities Regulatory Commission (CSRC) issued a code of corporate governance affecting practices and structures employed by Chinese firms. One year later, the CSRC allowed qualified foreign institutional investors (QFII) to enter

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