OWNERSHIP STRUCTURE It is in this dimension that the gap between the performance of publicly listed companies and unlisted companies was the most striking. The 71 publicly listed companies in the sample achieved an average score of 13 per cent, while private and state-owned groups each scored below 1 per cent.
Diagram 9 Country-by-country reporting: Average company performance by ownership structure Where 100% means a company is fully transparent in all its countries of operation
Publicly listed (71 companies)
12.7%
Private (12 companies)
0.9% Sample average 9%
State-owned (17 companies)
0.7%
0%
5%
10%
15%
20%
Only four out of twelve privately held companies and six out of seventeen stateowned companies scored above 0. The other 19 state-owned companies disclosed not a single data point on their international operations.
KEY FINANCIAL REPORTING ON DOMESTIC OPERATIONS In general, companies tend to report more fully on their domestic rather than on their international operations. In some cases, this is due to regulatory requirements, whereas in other cases it relates to the proportionately large size of the company’s domestic business. On average, companies in the sample scored 37 per cent in reporting on domestic operations, which means that they scored almost two points out of a possible five. Domestic revenues were most often disclosed whereas domestic income before tax was least often revealed. Russia’s Lukoil was the only company to report on all required items and to receive a full score for domestic disclosure, while 12 companies disclosed not a single required item on their domestic operations. Of these, nine were Chinese. It is important to note that the data on domestic operations is not included in the calculation of the overall Index. A single company ranking which includes both domestic and international operations would give an unintended comparative edge to companies operating in fewer countries.
Transparency in Corporate Reporting: Assessing Emerging Market Multinationals
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