page
33
Figure 18
takes the top 10 exchanges from our
stock exchange ranking and breaks them into two
categories: those located in countries with at least
one super policy and those based in countries with
no super policies. Nine of the top 10 exchanges are
based in countries with at least one super policy
in force.
49
Figure 19
performs the same segmentation on
the bottom 10 exchanges from our stock exchange
ranking.
50
The data show that nine of the 10
bottom performing stock exchanges are based in
countries
with no super policies
. The single exception
is the Shenzhen Stock Exchange, which is based
in Shenzhen, China. A single super policy was
found to exist in the Chinese market,
51
although
the impact of this policy may be offset by China’s
“implementation gap”.
52
Taken together, this analysis suggests that
sustainability disclsoure excellence is associated
with so-called super policies—disclsoure policies
that are mandatory, prescriptive and broad. Our
data also demonstrate that comparatively poor
disclosure practices are associated with a policy
environment characterized by the absence of
super policies.
49 The exception is the Athens Stock Exchange (Greece). Certain economic
and socio-cultural factors may explain the performance of large Greek
companies in the absence of a super policy, including possible informal
conditions encouraged by European regulators as part of their bailout.
50 The bottom 10 exchanges were the Nasdaq, the Indonesia Stock Exchange,
the Shenzhen Stock Exchange, the Philippine Stock Exchange, the Bangkok
Stock Exchange, the Kuwait Stock Exchange, the Saudi Arabia Stock
Exchange, the Lima Stock Exchange, the Qatar Stock Exchange and,
in 45
th
position, the Tel Aviv Stock Exchange.
51 The policy in question is the set of Social Responsibility Guidelines
published by the Shenzhen Stock Exchange in 2006.
52 For a discussion of China’s implementation gap, see
9
1
0
2
4
6
8
10
NUMBER OF STOCK EXCHANGES
AT LEAST ONE ‘SUPER POLICY’
NO ‘SUPER POLICY’
9
1
0
2
4
6
8
10
NUMBER OF STOCK EXCHANGES
AT LEAST ONE ‘SUPER POLICY’
NO ‘SUPER POLICY’
Figure 18:
Top 10 exchanges by overall score,
by home country policy environment
Figure 19:
Bottom 10 exchanges by overall score,
by home country policy environment
Source: CK Capital
Source: CK Capital
1...,30,31,32,33,34,35,36,37,38,39 41,42,43,44,45,46,47,48,49,50,...71