UWI-ALJGSB in collaboration with Rotman School of Management releases 2018 T&T ranking on Corporate Governance

“T&T Annual Corporate Governance Ranking 2018”

A Study on Corporate Disclosure Practices among Listed TTSE Companies The Arthur Lok Jack Global School of Business, University of the West Indies (UWI-ALJGSB), in collaboration with the Clarkson Centre for Business Ethics and Board Effectiveness, Rotman School of Management, University of Toronto (CCBE), is pleased to release the results of a study on the status of corporate disclosure practices among publicly listed companies on the Trinidad and Tobago Stock Exchange (TTSE). The findings of this study are intended to be used to help companies improve their disclosure policies and practices to meet not only the Trinidad and Tobago Corporate Governance Code but also international standards.

Final rankings were as follows:

It should be acknowledged that 2017 annual reports for all companies regulated by the TTSEC became available during the 1-year study.

Why should investors and other stakeholders care?

This initiative is one step to creating a more investor-ready climate in Trinidad and Tobago. Recently evidenced by Sagicor’s acquisition by a Canadian based TSX listed entity, good corporate disclosure is an attractive quality to an investor, albeit a local or foreign capital source. Increased capital flows into our market would have a positive impact on share prices, overall market capitalization and could potentially increase the wealth of many of the holders of shares on the TTSE.

Corporate disclosure is not only called for by shareholders and investors to analyse the relevance of their investments but also by other stakeholders, particularly for information about environmental, social and governance (ESG) issues. We, therefore, envision that the advancing of corporate disclosure practices would lead to an increase in investor confidence and the national capital market thereby fostering a better environment for all stakeholders.

How was it done?

The evaluation of corporate disclosure was based on the Trinidad and Tobago Corporate Governance Code in addition to 26 internationally recognised disclosure factors. Against these criteria, each company’s 2017 annual report was examined for the inclusion or omission of the said factors. Companies were then scored based on the number of categories that they had addressed. On the design of the framework Tony Spizzirri, Research Officer of CCBE stated “Prior to creating the scoring framework, you’re never sure how companies will rank or if any companies can meet most, if not all of the guidelines. It’s a real positive sign to see companies scoring very highly. It’s very important to create a system standard that promotes better disclosure and good governance practices rather than discourage with unachievable standards where everyone fails.” However, failure, in this case, is really an opportunity for disclosure enhancement and improving investor attractiveness. The first step is awareness created by this benchmarking exercise.
The CCBE has been conducting this type of work for 18 years and Matt Fullbrook, Manager at CCBE, said “There is a growing body of evidence, both academic and practical, that suggests that good governance is a risk factor, not just in terms of the success of the corporations but also in terms of issuers ability to attract capital and their ability to retain the confidence of their investors.

Next Steps

Dr. Ron Sookram, Project Lead, together with other Lok Jack GSB team members Adrian Davis, Researcher and Navin Dookeran will be working closely with The Trinidad and Tobago Securities Exchange Commission (TTSEC) which have pledged support to move the initiative forward and to enhance disclosure practices in public listed companies.
More details, analysis and insights, are contained in the attached presentation of the study.

For more information on the Ranking and Corporate Governance related matters, please feel free to contact: corporate.governance@lokjackgsb.edu.tt

About Arthur Lok Jack Global School of Business:
The Arthur Lok Jack Global School of Business was established in 1989 as a joint venture between The University of the West Indies and the private sector of Trinidad and Tobago to provide postgraduate education in business and management. Today, the UW-Lok Jack GSB is recognised as the premier institution for the provision of business and management education, training and consultancy services in Trinidad and Tobago and the wider Caribbean region. The motto Innovatus Ars Ducendi, means Innovating the Art of Leadership. Is the only institution in Trinidad & Tobago that offers globally accredited MBA programmes and in 2018 launched its first undergraduate degree programme: The Bachelor of International and Sustainable Business.
The UWI- ALJGSB is the partner institution for the research and release of global reports like: Global Entrepreneurship Monitor, World Economic Forum reports and now in collaboration with Rotman School of Management will be releasing an annual report on Corporate Governance.

Further information can be provided by contacting the Marketing Office at 645-6700; marketing@lokjackgsb.edu.tt