Tuesday, November 30, 2004
Lectures on Corporate Governance
Warsaw, Poland
On Tuesday, November 30, 2004 Mr. Geoffrey Mazullo, Director, PFS Program, gave two lectures to students in Warsaw, Poland. The lectures were made possible by a travel grant from the US Department of State.
In the morning, Mr. Mazullo gave a lecture entitled, “Reporting on Corporate Governance by Listed Companies in Central and Eastern Europe” to international and Polish students of the School of Management of Warsaw University.
In the afternoon, Mr. Mazullo gave a lecture entitled, “Corporate Governance in Developed Capital Markets and Transition Economies” to Polish students of the Warsaw School of Economics. The lecture was organized by the Youth Forum of the Confederation of Private Employers Leviatan. An article about the lecture appeared on the website of the Youth Forum. Please click on the following link to read the article, in Polish: Corporate Governance on the Border of Business and Politics – Polish.
The lectures were condensed from materials that Mr. Mazullo will present at a weekend course at the Faculty of Law and Administration of the University of Gdansk, Poland in January 2005. The materials will be published on the PFS Program website.
Monday, November 29, 2004
Corporate Governance and Capital Market Regulation in the European Union (EU) – Implications for Poland
Warsaw, Poland
On Monday, November 29, 2004 the Polish Corporate Governance Forum held a conference in Warsaw, Poland entitled, “Corporate Governance and Capital Market Regulation in the European Union (EU) – Implications for Poland.”
Mr. Geoffrey Mazullo, Director, PFS Program, participated in a panel discussion entitled, “How to Improve Corporate Governance in Poland and the EU.” Mr. Mazullo’s participation was made possible by a travel grant from the US Department of State.
To obtain the conference materials published on the website of the Polish Corporate Governance Forum, please click on the link below:
PCGF – Conference – November 29, 2004 – Polish
PCGF – Conference – November 29, 2004 - English
Friday, November 26, 2004
PFS Program Grant to Zagreb School of Economics & Management
The PFS Program awarded a PFS Program Grant to Zagreb School of Economics & Management to conduct two surveys: “Online Investor Relations: Survey of Websites of Listed Companies in Croatia” and “Survey of Reporting on Corporate Social Responsibility by Listed Companies in Croatia.” The surveys will be completed in January 2005 and published on the websites of ZSEM and the PFS Program in early February 2005.
Wednesday, November 10, 2004
Seminar on International Financial Reporting Standards (IFRS) and Reporting on Corporate Social Responsibility (CSR)
Ljubljana, Slovenia
On Wednesday, November 10, 2004 EWMI/PFS Program and the Ljubljana Stock Exchange held a seminar on International Financial Reporting Standards (IFRS) and Reporting on Corporate Social Responsibility (CSR). 76 persons attended the seminar. Participants included representatives of companies listed on the Official Market and the Free Market of the Ljubljana Stock Exchange; representatives of other Slovene companies and financial institutions; representatives of the Securities Market Agency of Slovenia; representatives of the Economics Faculty of Ljubljana University; a representative of the Bulgarian Stock Exchange – Sofia; a representative of the Macedonian Stock Exchange; and representatives of the Varazdin Stock Exchange.
At the seminar, speakers from Slovenia, the UK and the US presented current best practices in various aspects of financial reporting (International Financial Reporting Standards – IFRS) and non-financial reporting, including reporting on corporate governance corporate and corporate social responsibility (CSR). The Ljubljana Stock Exchange presented data regarding the first set of comply and explain statements of Slovene listed companies published on September 30, 2004 in compliance with the Corporate Governance Code implemented on March 18, 2004.
To download the agenda and presentations in English and in Slovene as well as a list of participants, please click on the links below:
 | Agenda - Seminar - November 10, 2004.doc - 13 KB |
| IFRS Presentation - November 10, 2004.ppt - 224 KB |
| Session 1 IFRS Current Status - November 10, 2004.pdf - 136 KB |
| Session 1A IFRS Glossary - November 10, 2004.pdf - 96 KB |
| David Cairns - biographical note 2004.pdf - 45 KB |
| Presentation - PFS Program - November 10, 2004 - Part I.ppt - 1,140 KB |
| Presentation - PFS Program - November 10, 2004 - Part II.ppt - 1,223 KB |
| Presentation - PFS Program - November 10, 2004 - Part III.ppt - 1,035 KB |
| Presentation - PFS Program - November 10, 2004 - Part IV.ppt - 459 KB |
| Presentation - PFS Program - November 10, 2004.ppt - 3,737 KB |
| Presentation - PFS Program - November 10, 2004.zip - 3,293 KB |
| Presentation - Economics Faculty - November 10, 2004 - Slovene .ppt - 226 KB |
| Presentation - Ljubljana Stock Exchange - November 10, 2004 - Slovene.ppt - 296 KB |
| List of Participants - Seminar - November 10, 2004.doc - 50 KB |
Wednesday, October 27, 2004
Seminar on Application of and Compliance with International Financial Reporting Standards (IFRS)
Tallinn, Estonia
On October 27, 2004 the PFS Program, in cooperation with the Tallinn Stock Exchange (OMX Exchanges) conducted a seminar entitled, “Application of and Compliance with International Financial Reporting Standards.”
21 accounting/finance specialists from Estonian financial institutions and listed companies as well as four representatives of Lithuanian accounting and capital markets institutions attended the seminar.
To download the agenda, presentations and list of participants, please click on the links below:
Tuesday, October 12, 2004
Pilot Project to Develop a Public Awareness/Information Campaign for Pension Reform in Lithuania
Vilnius, Lithuania
In 2004, the PFS Program and the Lithuanian Free Market Institute co-financed a Pilot Project to Develop a Public Awareness/Information Campaign for Pension Reform in Lithuania. This activity is part of an ongoing regional initiative analyzing pension reform throughout CEE countries. The pilot project was completed in September 2004.
To download the project report, please click on the link below:
Thursday, October 7, 2004
Country Study: Updated Analysis of the Economic Impact of the Registered Pledge System in Latvia - 2004
Riga, Latvia and Budapest, Hungary
In 2004, the PFS Program and the Association of Latvian Commercial Banks co-financed for the second year in a row a study of the economic impact of the registered pledge system in Latvia.
This country study is part of an ongoing regional registered pledges initiative that has included legislative drafting, research and public awareness/information activities in Albania, Bosnia and Herzegovina, Bulgaria, Czech Republic, Hungary, Latvia, Lithuania, Poland and Slovak Republic.
To download the study, please click on the link below:
Tuesday, September 28, 2004
Third Semi-Annual Survey of Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in Central and Eastern Europe
Budapest, Hungary
Today, the PFS Program publishes its third semi-annual Survey of Reporting on Corporate Social Responsibility (CSR) by the 10 Largest Listed Companies (by Market Capitalization) in Central and Eastern Europe. Companies in Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia were surveyed for the third time. Bulgaria, Croatia and Romania were included in the survey for the first time. The survey was conducted by PFS Program Interns Marek Korycki, Izabela Samson, Zuzana Schwartzova and Adam Szymasiuk.
The survey provides current data concerning companies’ disclosures on a range of CSR issues in annual reports and on websites as of August 15, 2004. For the companies from the eight new member states of the European Union (EU), comparative data from the previous surveys conducted in April 2004 and August 2003 is presented
In general, disclosures on CSR issues were similar to those observed in the survey conducted in April 2004. However, the survey demonstrates improvement in the quality and quantity of disclosures about corporate governance issues. As noted in the survey conducted in spring 2004, EU accession and adoption of corporate governance codes in several countries in 2003/2004 are two factors influencing broader and deeper reporting.
Survey findings include the following:
· 86% of the companies surveyed have an English language website (compared with 85% in April 2004 and 85% in August 2003);
· 74% of the companies surveyed provide an electronic version of the English-language annual report for 2003 (compared with 76% of the companies who provided a 2002 or 2003 annual report in April 2004);
· 99% of the companies surveyed disclose information about their governance structure in their annual report (compared with 59% in April 2004 and 40% in August 2003);
· 35% of the companies surveyed note compliance with environmental standards in their annual report (the same percentage as in April 2004 whereas in Augsut 2003 the percentage was 19%); and
· 51% of the companies surveyed mention employee development or benefits policy in their annual report (compared with 49% in April 2004 and 34% in August 2003).
In terms of disclosures made on company websites, other comparative findings include the following:
· In August 2004, 53% of the companies surveyed disclosed information about their shareholder rights policy; in April 2004, 51% of companies disclosed this information; and in August 2003, 14% of companies disclosed this information.
· In August 2004, 31% of the companies surveyed provided information about their environmental performance; in April 2004, 28% of companies provided this information; and in August 2003, 14% of companies surveyed provided this information;
· In August 2004, 17% of companies provided information about compliance with labor standards; in April 2004, 21% of companies provided this information; and in August 2004 only 3% of companies provided this information.
The first time results for Bulgaria, Croatia and Romania are positive; whereas few companies disclose complete information in English on all three information categories surveyed, at least one company from each country disclosed information on each of the five questions in each of the three categories. This demonstrates an awareness of these issues in each country.
To download the survey and the background databases, please click on the links below:
Monday, September 13, 2004
Investor Relations magazine Central and Eastern Europe Conference & Awards 2004
Budapest, Hungary
On Monday, September 13, 2003 Investor Relations magazine held its third annual Central and Eastern Europe Investor Relations Conference & Awards. This year’s venue was Budapest, Hungary following last year’s event in Warsaw, Poland and the inaugural event in Budapest in September 2001.
The Budapest Stock Exchange and the PFS Program were two of the many sponsors; for the third year in a row, the PFS Program co-financed the independent research that selected the award winners.
Participants representing institutional investors, listed companies, regulatory authorities, self-regulatory organizations, service providers and stock exchanges from across Central and Eastern Europe as well as the European Union and the United States attended. Mr. Mazullo presented the PFS Program’s third semi-annual Survey of Reporting on Corporate Social Responsibility by the Largest Listed Companies in CEE. Please click on this link to Investor Relations magazine to read a list of the companies and individuals who received awards.
Friday, September 3, 2004
Investor Relations Online: Survey of Websites of the Largest Listed Companies in Central and Eastern Europe (CEE)
PFS Program Interns Izabela Samson and Adam Szymasiuk conducted the PFS Program’s seventh semi-annual survey of online investor relations of the 10 largest listed companies (by market capitalization) in Central and Eastern European (CEE) countries. In addition to Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Republic and Slovenia this survey includes Bulgaria, Croatia and Romania for the first time.
The survey demonstrates improved online disclosure by the largest listed companies in the eight new member states of the European Union (EU) and impressive first time survey results in the three EU-accession countries.
Investor Relations Online: Survey of Websites of the Largest Listed Companies in CEE analyzes the websites of the ten largest listed companies (by market capitalization) in each of the following CEE countries: Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic and Slovenia. The survey provides current data as of August 15, 2004 and comparisons with the six previous surveys, published in February 2004, August 2003, February 2003, August 2002, February 2002 and August 2001.
As in previous surveys, the percentage of companies with a local-language website remains at 95%. In February 2004, 95% of the companies surveyed had a website, in comparison with 96% in August 2003 and 95% in February 2003.)
In August 2004, 84% of the companies surveyed have an English-language website, in comparison with 75% in February 2004, 84% in August 2003 and 80% in February 2003.
In contrast with the above generally stable thresholds, all other categories surveyed indicate increased disclosure of information.
Survey findings of the eight new member states of the European Union (EU) include the following:
95% of the companies surveyed have a local language website;
84% have an English-language website;
84% provide a list of management online (compared with 77% in February 2004);
38% provide additional information on management online (compared with 38% in February 2004);
70% provide a list of board members online (compared with 61% in February 2004); and
26% provide additional information on board members online (compared with 23% in February 2004).
A comparison of this first survey of companies in Bulgaria, Croatia and Romania with the first complete survey of companies in eight Central and Eastern European (CEE) countries conducted by the PFS Program in February 2002 leads to a positive conclusion: In August 2004, the online investor relations practices of companies in Bulgaria, Croatia and Romania are strikingly similar to the practices of the eight CEE countries in February 2002, two years prior to EU accession.
To download the survey and the background databases, please click on the links below:
Tuesday, June 29, 2004 - Wednesday, June 30, 2004
Workshop on Internal Audit of Financial Sector Supervisory and Regulatory Authorities
Tallinn, Estonia
On June 29-30, 2004 the Estonian Financial Supervision Authority (EFSA) and the PFS Program held a Workshop on Internal Audit of Financial Sector Regulatory Authorities (FSRAs) in Tallinn, Estonia. The workshop was organized as a follow-up to the Study Tour to the United States (US) organized by the PFS Program in February 2003 (See entry below dated February 22 – March 1, 2003.)
This workshop represented the first meeting of internal auditors of FSRAs from nine countries: Czech Republic, Estonia, Hungary, Italy, the Netherlands, Slovak Republic, Spain, the United Kingdom and the US. The primary focus group was the internal auditors of unified FSRAs. In addition, a senior auditor of the State Audit Office of Estonia, the internal auditor of the Bank of Spain and an auditor from the Office of the Inspector General of the US Federal Reserve Board also participated in the workshop.
This initiative was conceived and proposed by the internal auditor of the EFSA, a relatively new institution, established in early 2002 through the merger of previously separate regulatory authorities for banking, capital markets and insurance. (See a related article entitled, “Trend towards Consolidated Financial Supervisory Authorities,” dated October 9, 2002 on the Capital Markets Research page of this website.)
The EFSA identified a number of issues of mutual interest to internal auditors of unified FSRAs, including (from the general to the specific): globalization of financial markets; growing complexity and sophistication of financial products offered to consumers; increased regulatory and supervisory requirements related to European Union (EU) accession; increased regulatory focus on issues such as conflict of interest, corporate governance, ethics, and enterprise-wide risk management; harmonization of regulatory and supervisory functions in one institution; and identification of best practices and discussion of international standards for internal audit.
The EFSA sent an invitation to the workshop and a questionnaire about the internal audit function to more than 30 FSRAs in Europe and the US. The questionnaire results were presented and discussed at the workshop.
The workshop provided an opportunity for internal auditors of FSRAs to share practical experiences, compare audit methodologies and review actual audits conducted.
The questionnaire results and the conclusions of a roundtable discussion at the end of the workshop resulted in a proposal that this pilot workshop serve as a starting point for future annual meetings of internal auditors of FSRAs. A letter summarizing the workshop proceedings will be distributed to the above-mentioned 30 FSRAs, with the goal of organizing a second annual workshop in 2005.
To download the agenda, presentations and a list of participants, please click on the links below:
Friday, June 25, 2004
Financial Intelligence Units Online – Inaugural Survey of Websites of 40 Financial Intelligence Units (FIUs)
This inaugural survey - sponsored by the Partners for Financial Stability (PFS) Program, and designed and conducted in April-June 2004 by Digital Strategies Group, Inc. – covers the Financial Intelligence Units (FIUs) in all 30 OECD countries, eight non-OECD European countries and two non-OECD Asian countries. The key objectives are to: (i) compile and publicize statistics on what basic information is available; (ii) identify and discuss best practices; and (iii) highlight noteworthy features and methods used to address money laundering and financial crime.
The survey demonstrates that not all of the FIUs surveyed use the Internet as a technology to communicate with the public-at-large. 80% of the FIUs surveyed have a website in their native language. Only 18 FIUs in countries where English is not the official language provide an English-language version of their website; this does not include six countries where English is the official language. Nevertheless, some of the websites surveyed offer excellent resources that educate the public about the importance of Anti-Money Laundering (AML) efforts, both nationally and internationally.
Structured as a "Six-Step Tour of Financial Intelligence Units Online," the survey compares the basic features of the English-language versions of the websites in areas such as availability of online forms and guidance with STRs (Suspicious Transaction Reporting), legal and regulatory overviews and AML education. In each area, innovations and best practice examples were noted. Among other conclusions, the survey finds that of all English-language versions of the websites surveyed:
- 88% have a separate section presenting an institutional overview;
- 71% have a legal overview section;
- 63% provide offsite links to other AML related sources;
- 63% use the Internet to provide AML education and feedback to the global business, financial and legal communities;
- 46% provide information on terrorist financing;
- 46% provide online news and press releases;
- 42% provide some assistance in the STR reporting area; and
- 13% offer email subscriptions/alerts.
The results of this groundbreaking publicly-available survey, including discussion of innovative features and best practice examples, were first presented on June 10, 2004 at a Regional Workshop on Prevention of Money Laundering organized by the PFS Program, the Estonian Central Criminal Police (FIU) and the Estonian Police Board. The seminar took place on June 10-11, 2004 in Tallinn, Estonia. 44 participants (including attorneys, FIU staff, judges, policemen/women and prosecutors) representing a number of law enforcement institutions from Estonia, Germany, Latvia, Lithuania, Poland, Slovenia, the UK, Ukraine and the US attended.
To download the survey, please click on the link below:
Thursday, June 10, 2004 - Friday, June 11, 2004
Regional Workshop on Prevention of Money Laundering
Tallinn, Estonia
On June 10-11, 2004 the PFS Program, in cooperation with the Central Criminal Police (Financial Intelligence Unit) and the Estonian Police Board, conducted a Regional Workshop on Prevention of Money Laundering. This was the fifth in a series of case-study based regional workshops organized by the PFS Program that bring together law enforcement experts from across new and old member states of the European Union (EU) and the US.
The participant breakdown was as follows: Estonia – two judges, 17 policemen/women from the Estonian Financial Intelligence Unit and the Estonian Police Board, five prosecutors, a financial auditor of the Estonian Financial Supervision Authority and an investigator of the Tax and Customs Board; Germany – one certified fraud manager (a former judge and prosecutor); Latvia – two transactions analysts of the Latvian Office for the Prevention of Laundering of Proceeds of Derived from Criminal Activity; Lithuania – one inspector and one investigator of the Lithuanian Financial Crimes Investigation Service, two judicial assistants of the Supreme Court of Lithuania and two prosecutors; Poland – one judge and three prosecutors; Slovenia - the Director of the Slovene Office for Money Laundering Prevention; UK - one barrister; and Ukraine – the Deputy Head and two staff members of the analytical subdivision of the State Department for Financial Monitoring.
On the first day of the workshop, specialists from Estonia, Germany, Poland, Slovenia, and the UK presented case studies demonstrating a range of issues and experiences in combating money laundering. On the second day, participants debated case studies presented by participants from Estonia, Latvia, Lithuania and Poland. This in-depth discussion of real life situations from the four jurisdictions, complemented by insights offered by German, Slovene and UK practitioners, proved to be an extremely fruitful exercise, enabling the exchange of lessons learned and identification of best practices.
To download the agenda, presentations, speaker CVs and list of participants, please click on the links below:
Friday, June 4, 2004
PFS Program Grant to the Lithuanian Free Market Institute
The PFS Program awarded a PFS Program Grant to the Lithuanian Free Market Institute to conduct a Pilot Project to Develop a Public Awareness/Information Campaign for Pension Reform in Lithuania.
This activity is part of an ongoing regional initiative analyzing pension reform throughout CEE countries.
The pilot project will be completed in autumn 2004 and a project report will be published on the PFS Program website.
Thursday, June 3, 2004
PFS Program Grant to the Association of Latvian Commercial Banks
The PFS Program awarded a PFS Program Grant to the Association of Latvian Commercial Banks to conduct an updated analysis of “The Economic Impact of the Registered Pledge System in Latvia – 2004.”
This analysis is part of an ongoing regional registered pledges initiative that has included legislative drafting, research and public awareness/information activities in Albania, Bosnia and Herzegovina, Bulgaria, Czech Republic, Hungary, Latvia, Lithuania, Poland and Slovak Republic.
The research will be completed in autumn 2004 and the report will be published on the PFS Program website.
Thursday, May 20, 2004
International Accounting Standards (IAS) Seminar
Vilnius, Lithuania
On May 20, 2004 the PFS Program, in cooperation with the Accounting Institute of Lithuania and the National Stock Exchange of Lithuania, conducted a seminar on International Financial Reporting Standards (IFRS). 69 accountants, auditors, chief financial officers and financial staff of listed companies as well as representatives of Lithuanian capital markets institutions attended the seminar.
The National Stock Exchange of Lithuania translated the agenda and presentations into Lithuanian (lietuviskai).
To download the agenda and presentations, in English and in Lithuanian, please click on the links below:
Thursday, May 6, 2004 - Friday, May 7, 2004
Participation in Second Annual Baltic Management Development Association (BMDA) Conference, “Enhancing Baltic Managerial Competitiveness”
Riga, Latvia
On Thursday, May 6 – Friday, May 7, 2004 the Baltic Management Development Association (BMDA) held its Second Annual Conference, “Enhancing Baltic Managerial Competitiveness” in Riga, Latvia. 86 participants from 13 countries (Estonia, Latvia and Lithuania as well as Belgium, France, Germany, Norway, Poland, Russia, Slovenia, Switzerland, the UK and the US) attended the conference. For more information about the conference, please visit the BMDA website.
Geoffrey Mazullo, Director, PFS Program gave a presentation entitled, “Reporting on Corporate Social Responsibility by Listed Companies in Baltic Countries.”
To download the presentation, please click on the link below:
Wednesday, May 5, 2004
Second Semi-Annual Survey of Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in Central and Eastern Europe
Budapest, Hungary
Today, the PFS Program publishes its second semi-annual Survey of Reporting on Corporate Social Responsibility (CSR) by the 10 Largest Listed Companies (by Market Capitalization) in Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia. The survey was conducted by PFS Program Interns Katarzyna Hanula and Marek Korycki.
The survey provides current data concerning companies’ disclosures on a range of CSR issues as of April 15, 2004 and a comparison with the previous survey conducted in August 2003. Comparative data from the previous year is not available for Hungarian and Polish companies, since the surveys conducted in those countries in 2003 analyzed information provided in Hungarian and Polish respectively. Additionally this survey analyzes disclosures related to corporate governance codes in those countries with such a code, i.e. Czech Republic, Hungary, Poland, Slovakia and Slovenia. The survey conducted in 2003 did not analyze such disclosures, because a corporate governance code either did not yet exist or had only recently been issued in the respective country.
The survey demonstrates that disclosures on CSR issues increased significantly over the past six months. Survey findings include the following:
-85% of the companies surveyed have an English language website;
-76% of the companies surveyed provide an English-language annual report for 2002 or 2003;
-59% of the companies surveyed mention employee development or benefits policy;
-51% of the companies surveyed note compliance with environmental standards; and
-20% of the companies surveyed disclose information regarding compliance with a Corporate Governance Code.
Comparative findings include the following:
-In April 2004, 40% of the companies surveyed disclosed information regarding the environmental impact of their operations; in August 2003, only 22% of companies surveyed provided this information.
-In April 2004, 36% of the companies surveyed provided audit-related information on their website; in August 2003 only 13% of companies surveyed provided this information;
Two significant factors influenced the improved results observed in this survey. First, several stock exchanges implemented corporate governance codes in 2003 and 2004. These codes provide an additional impetus/pressure to disclose a variety of data. Second, Hungary and Poland are covered by this regional survey for the first time and the above-average disclosures of Hungarian and Polish companies improved the general (regional) averages. For example, excluding Hungary and Poland, the above-mentioned averages decline to 30% (environmental impact) and 35% (audit-related information) respectively. Nevertheless, even without including these countries, a marked improvement can be observed.
The PFS Program will continue to analyze this issue; we will conduct a third semi-annual Survey in August 2004.
To download the background database and a presentation of the survey results, please click on the links below:
Monday, April 26, 2004
Lecture on Corporate Governance in Transition Economies
Washington, DC
On April 26, 2004 Geoffrey Mazullo, Director, PFS Program gave a lecture entitled, “Corporate Governance in Transition Economies” as part of the International Institute on Securities Market Development organized by the United States Securities and Exchange Commission. Senior staff of securities commissions and stock exchanges from 58 countries attended the Institute, which took place from April 19-29, 2004.
To download the presentation, please click on the link below:
Saturday, April 17, 2004 - Sunday, April 18, 2004
Lectures on Corporate Governance
Gdansk, Poland
On April 17-18, 2004 Geoffrey Mazullo, Director, PFS Program gave two lectures on corporate governance as part of the Course on American Law organized by the Faculty of Law and Administration of the University of Gdansk.
To download the materials presented at the lectures, please click on the links below:
Friday, March 26, 2004 - Saturday, March 27, 2004
Workshop on Banking and Financial Sector Privatization: Experiences in Hungary and Other Central and Eastern European (CEE) Countries
Ljubljana, Slovenia
On March 26-27, 2004 the Center of Excellence in Finance held a Workshop on Banking and Financial Sector Privatization: Experiences in Hungary and Other CEE Countries.
The main objective of the workshop was to provide an overview of financial sector privatization in post-communist transition countries, with special emphasise on the privatization of banks and the experiences in Hungary and Slovenia. Furthermore, the role of foreign banks in CEE countries was presented. The workshop’s program also included the importance of corporate governance in the privatization process, as well as latest developments in corporate governance through which greater efficiency and corporate social responsibility are promoted.
13 participants from six Stability Pact member countries attended the workshop: Two from Bosnia and Herzegovina, two from Croatia (Central Bank), two from Kosovo, three from Macedonia, two from Romania and two from Slovenia. In covering the above-mentioned issues, lecturers discussed with participants the situation in their respective countries.
The lecturers were: Geoffrey Mazullo, Director, PFS Program, EWMI; Dr. Peter Mihalyi, Director, Banking Programs, PFS Program, EWMI; and Professor Dr. Ivan Ribnikar, Faculty of Economics, University of Ljubljana, Slovenia.
To download the workshop agenda and presentations, please click on the links below:
| Agenda - CEF Workshop - March 26-27, 2004.doc - 27 KB |
| Presentation - The Economic Rationale - March 26-27, 2004.ppt - 74 KB |
| Presentation - Privatization of the Hungarian Banking and Insurance Sector _ March 26-27, 2004.ppt - 47 KB |
| Presentation - Slovene Experience - Professor Ribnikar - March 26-27, 2004.doc - 34 KB |
| Presentation - PFS Program - Comparative Analysis of Corporate Governance - March 26-27, 2004.ppt - 308 KB |
| Presentation - PFS Program - Transparency and Corporate Disclosure - March 26 - 27, 2004.ppt - 1,942 KB |
| Presentation - PFS Program - Latest Developments in Corporate Governance - March 26-27, 2004.ppt - 336 KB |
| Presentation - PFS Program - The Role of Foreign Banks in CEE Countries - March 26-27, 2004.ppt - 94 KB |
| Report - Banking and Financial Sector Privatization Workshop - March 26-27, 2004.doc - 145 KB |
| List of Participants - CEF Workshop - March 26-27, 2004.xls - 21 KB |
Thursday, March 25, 2004
Country Study: “Survey of Reporting on Corporate Social Responsibility (CSR) by Listed Companies in Hungary”
Budapest, Hungary
On Thursday, March 25, 2004 Hungarian Environmental Economics Center (MAKK) released its first “Survey of Reporting on Corporate Social Responsibility (CSR) by Listed Companies in Hungary.” The survey is part of a wider regional initiative organized by East-West Management Institute’s Partners for Financial Stability (PFS) Program.
The Survey of Reporting on CSR by Listed Companies in Hungary was conducted during the time period August - November 2003. It investigates Hungarian-language information available in the 2002 annual reports and websites of 27 companies listed on the Budapest Stock Exchange.
Encompassing corporate governance, environmental policies and social policies, the Hungarian survey employs the same template used by the PFS Program in its Survey of Reporting on CSR by the Largest Listed Companies in Czech Republic, Estonia, Latvia, Lithuania, Slovak Republic and Slovenia, published in September 2003. In addition, country studies of listed companies in Czech Republic and Poland have been completed using the same template. (The Czech survey was published on this page of the PFS Program website on March 8, 2004. The Polish survey was published on this page of the PFS Program website on December 18, 2003.) As a result, the group of surveys should enable for the first time benchmarking of reporting on CSR in these countries against other countries in the European Union (EU) and elsewhere.
Survey findings include the following:
· 89% of Hungarian listed companies disclose relevant CSR information.
· 70% disclose shareholder rights policy and 56% provide information on corporate governance structure.
· In the field of environmental policy, 41% report on adherence to environmental standards and 37% disclose data about their environmental performance.
· In the social policy sphere, 56% of listed companies disclose employee development/employee benefit policies and 52% disclose information regarding community patronage/sponsorship programs.
To download the survey and a presentation of the survey results, please click on the links below:
Wednesday, March 24, 2004
Second Workshop on Corporate Social Responsibility (CSR): Reporting on CSR by CEE Listed Companies
Budapest, Hungary
On March 24, 2004 the Center for the Social Foundations of Business held the Second Workshop in its series on Corporate Social Responsibility (CSR), entitled “Reporting on CSR by CEE Listed Companies." It took place from 17:00 – 19:00 at the Graduate Business School of the Central European University.
Professor Heather Elms, Associate Professor of Strategy and Ethics, opened the workshop with an introduction to the topic and a brief summary of the first workshop held in November 2003. She placed CSR within the context of the social contracts approach to the corporation and outlined the distinction between the shareholder and the stakeholder models of the corporation. She then posed three questions to the workshop participants:
1. What social responsibilities do corporations have?
2. How should CSR be reported and measured?
3. What social responsibilities do shareholders have?
Mr. Geoffrey Mazullo, Director, PFS Program, presented data surveyed by the PFS Program, namely: The PFS Program’s six Surveys of Online Investor Relations of the Largest Listed Companies in Central and Eastern Europe (CEE), conducted semi-annually since September 2001; and the inaugural Survey of Reporting on CSR by the Largest Listed Companies in CEE, published on the capital markets research page of this website on September 4, 2003.
Mr. Mazullo also presented data from the Survey of Reporting on CSR by Banks, Financial Institutions and Listed Companies in Poland, conducted by The Gdansk Institute for Market Economics and the Survey of Reporting on CSR by Listed Companies in Czech Republic, conducted by The Leadership Forum Prague. (The former was published on the capital markets research page of this website on December 18, 2003; the latter was published on the capital markets research page of this website on March 8, 2004.)
Mr. Jozsef Fucsko, Research Director, Hungarian Environmental Economics Center (MAKK) presented his institution’s Survey of Reporting on CSR by Listed Companies in Hungary. (The full survey may be found on the capital markets research page of this website.)
Mr. Gyorgy Mohai, Deputy CEO, Budapest Stock Exchange, commented on the three presentations. He noted four key issues:
- Fund managers often base their decision on whether or not to invest in a company on the quality of the CEO and senior management.
- The CEO and company management play a key role in implementing CSR policies within the company.
- The company’s industry plays a role in determining its CSR policies.
- The company’s shareholder structure impacts its CSR policies.
CEU students and professors as well as representatives of Hungarian investment firms, Hungarian Non-Governmental Organizations (NGOs), and multinational companies participated in the workshop.
During the question and answer session, speakers and participants debated the distinction between disclosure (reporting) and actual performance. In particular, they raised the question of whether a company’s claims to socially responsible are more important that its actual CSR activities. In this context, it was noted that disclosure is of particular importance for listed companies, the universe of companies covered by the surveys presented here. Participants also discussed which constituencies (consumers, individual Hungarian shareholders, institutional shareholders [Hungarian pension funds; foreign investment funds], regulatory authorities, researchers, students and others) would be most interested in obtaining CSR information from listed companies in Hungary and other CEE countries.
To download the workshop agenda and presentations, please click on the links below:
Monday, March 8, 2004
Country Study: “Survey of Reporting on Corporate Social Responsibility (CSR) by Listed Companies in Czech Republic”
Prague, Czech Republic
On Monday, March 8, 2004 The Leadership Forum released its first “Survey of Reporting on Corporate Social Responsibility (CSR) by Listed Companies in the Czech Republic.” The survey is part of a wider regional initiative organized by East-West Management Institute’s Partners for Financial Stability (PFS) Program.
The Survey of Reporting on CSR by Listed Companies in the Czech Republic was conducted during the time period August - October 2003. It investigates Czech-language information available in the 2002 annual reports and websites of 33 companies listed on the Prague Stock Exchange.
Encompassing corporate governance, environmental policies and social policies, the Czech survey employs the same template used by the PFS Program in its Survey of Reporting on CSR by the Largest Listed Companies in Czech Republic, Estonia, Latvia, Lithuania, Slovak Republic and Slovenia, published in September 2003. In addition, country studies of listed companies in Hungary and Poland have been completed using the same template. (The Polish survey was published on this page of the PFS Program website on December 18, 2003. The Hungarian survey will be published in late March 2004.) As a result, the group of surveys should enable for the first time benchmarking of reporting on CSR in these countries against other countries in the European Union (EU) and elsewhere.
Survey findings include the following:
- 91% of Czech listed companies provide information on corporate governance structure.
- 82% disclose audit related information and 48% disclose shareholder rights policy.
- In the environmental policy sphere, 39% report on energy and water use and 32% state whether they comply with industry, national and/or international regulations regarding environmental standards.
- In the social policy sphere, 61% of listed companies disclose employee development/employee benefit policies and 58% disclose information regarding community patronage/sponsorship programs.
To download the survey and a presentation of the survey results, please click on the links below:
Monday, March 1, 2004
Investor Relations Online: Survey of Websites of the Largest Listed Companies in CEE
PFS Program Intern Katarzyna Hanula conducted the PFS Program’s sixth semi-annual survey of online investor relations of the 10 largest listed companies (by market capitalization) in each of the following countries: Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Republic and Slovenia. The survey provides current data and comparisons with the five previous surveys, completed in August 2003, February 2003, August 2002, February 2002 and August 2001.
The survey demonstrates that a majority of the largest listed in the region communicate with shareholders and potential investors via the Internet, in local language and in English. Nevertheless, comparison of this survey with the two surveys conducted in 2003 indicates that certain thresholds have been reached, and further improvements above these thresholds have not been made. For example: in February 2004, 95% of the companies surveyed have a website (in comparison with 96% in August 2003 and 95% in February 2003) and 75% have an English-language website (in comparison with 83% in August 2003 and 80% in February 2003).
Furthermore, as noted in previous surveys, many companies still do not provide additional information in English about management and supervisory board members. The survey suggests that “best practice” would include a separate page of the website dedicated to investor relations, including a photo and short biography of each senior manager and each member of the board of directors/supervisory board.
To download the survey and the background database, please click on the links below:
Thursday, February 26, 2004 - Friday, February 27, 2004
Regional Workshop on Prevention of Money Laundering
Vilnius, Lithuania
On February 26-27, 2004 the PFS Program, in cooperation with the Prosecutor General’s Office of the Republic of Lithuania and the Ministry of Justice of the Republic of Lithuania conducted a Regional Workshop on Prevention of Money Laundering. This was the fourth in a series of case-study based regional workshops organized by the PFS Program that bring together law enforcement experts from the new member states of the European Union (EU), the United Kingdom (UK) and the US.
The participant breakdown was as follows: Estonia – the Chief Superintendent and the Detective Chief Inspector of the Estonian Financial Intelligence Unit (FIU) as well as two prosecutors; Latvia – the Deputy Director and a transactions analyst of the Latvian Office for the Prevention of Laundering of Proceeds of Derived from Criminal Activity; Lithuania - six representatives of the Lithuanian Financial Crimes Investigation Service, two judges, nine prosecutors and the Deputy Director of the International Law Department, Ministry of Justice; Poland - four prosecutors; Slovenia - the Director of the Slovene Office for Money Laundering Prevention; UK - one barrister; and US - one prosecutor and one Regional Advisor of the US Treasury, also a former prosecutor.
On the first day of the workshop, specialists from Lithuania, Poland, Slovenia, the UK and the US presented case studies demonstrating a range of issues and experiences in combating money laundering. On the second day, participants debated case studies presented by staff of the FIUs, judges and prosecutors from Estonia, Latvia, Lithuania and Poland. This in-depth discussion of real life situations from the four jurisdictions, complemented by insights offered by Slovene, UK and US practitioners, proved to be an extremely fruitful exercise, enabling the exchange of lessons learned and identification of best practices.
To download the agenda, presentations, speaker CVs and list of participants, please click on the links below:
Thursday, February 19, 2004
Conference on Corporate Social Responsibility
Prague, Czech Republic
On Thursday, February 19, 2004 The Leadership Forum held a Conference on Corporate Social Responsibility in Prague, Czech Republic. At the conference, The Leadership Forum presented its inaugural “Survey of Reporting on Corporate Social Responsibility (CSR) by Listed Companies in Czech Republic.” This research, co-financed by a PFS Program Grant, is part of a comprehensive initiative involving a regional survey of reporting on CSR by the largest listed companies in CEE countries as well as country surveys conducted by research institutions in Czech Republic, Hungary and Poland. (The Polish survey was presented at an CSR seminar in Warsaw on November 19, 2003; the final version of the survey was published (in English and in Polish) on the PFS Program website on December 18, 2003. The Hungarian survey will be presented at a CSR workshop in Budapest on March 24, 2004.)
The conference opened with a presentation of the PFS Program’s Regional Survey of Reporting on Corporate Social Responsibility by the Largest Listed Companies in Six Central and Eastern European Countries. Some data from the above-mentioned Polish country survey was also noted in the presentation. Thereafter, The Leadership Forum presented its Survey of Reporting on Corporate Social Responsibility (CSR) by Listed Companies in Czech Republic. A final session allowed for a panel discussion about the research and brainstorming on possible follow-up activities. Representatives of a variety of Czech, European, international and US organizations attended the conference.
To download the conference presentations, please click on the links below:
Wednesday, February 11, 2004
Corporate Governance Seminar
Vilnius, Lithuania
On February 11, 2004 the PFS Program and the National Stock Exchange of Lithuania held a Corporate Governance Seminar in Vilnius. 58 persons attended the seminar. Participants included representatives of companies listed on the Official List and the Current List of the National Stock Exchange of Lithuania; representatives of companies considering listing on the National Stock Exchange of Lithuania; representatives of Lithuanian brokerage firms and law firms; staff of the National Stock Exchange of Lithuania; two Commissioners of the Lithuanian Securities Commission; representatives of the Lithuanian Central Depositary; two representatives of Riga Stock Exchange; a representative of the Management Board of the Estonian Financial Supervision Authority; and a representative of HEX Tallinn.
At the seminar, a variety of speakers presented developments in corporate governance and experiences with corporate governance codes in other Central and Eastern European countries, the European Union, Germany, Poland, the United Kingdom, the United States and globally. The National Stock Exchange of Lithuania presented its draft Corporate Governance Code.
To download the agenda and presentations in English and in Lithuanian as well as a list of participants, please click on the links below:
| Agenda - Corporate Governance Seminar - February 11, 2004.doc - 25 KB |
| Agenda - Corporate Governance Seminar - February 11, 2004 - LT.doc - 28 KB |
| Presentation - PFS Program - February 11, 2004.ppt - 819 KB |
| Presentation - PFS Program - February 11, 2004 - LT.ppt - 851 KB |
| CV - Geoffrey Mazullo - February 2004.doc - 26 KB |
| CV - Geoffrey Mazullo - February 2004 - LT.doc - 29 KB |
| Presentation - Deminor Rating - February 11, 2004.ppt - 1,756 KB |
| Presentation - Deminor Rating - February 11, 2004 - LT.ppt - 1,779 KB |
| CV - Jean-Nicolas Caprasse - February 2004.pdf - 67 KB |
| CV - Jean-Nicolas Caprasse - February 2004 - LT.doc - 26 KB |
| Presentation - Hermes Pensions Management Ltd. - February 11, 2004.ppt - 394 KB |
| Presentation - Hermes Pensions Management Ltd. - February 11, 2004 - LT.ppt - 381 KB |
| CV - Colin Melvin - Feburary 2004.doc - 21 KB |
| CV - Colin Melvin - February 2004 - LT.doc - 25 KB |
| Presentation - DSW - February 11, 2004.ppt - 57 KB |
| Presentation - DSW - February 11, 2004 - LT.ppt - 55 KB |
| CV - Hans-Detlev Speckmann - February 2004.doc - 20 KB |
| CV - Hans-Detlev Speckmann - February 2004 - LT.doc - 21 KB |
| Presentation - Warsaw Stock Exchange - February 11, 2004.ppt - 192 KB |
| Presentation - Warsaw Stock Exchange - February 11, 2004 - LT.ppt - 177 KB |
| CV - Anna Miernicka - February 2004.doc - 21 KB |
| CV - Anna Miernicka - February 2004 - LT.doc - 22 KB |
| Presentation - Valiunas - February 11, 2004.ppt - 180 KB |
| Presentation - Valiunas - February 11, 2004 - LT.ppt - 180 KB |
| CV - Rolandas Valiunas - February 2004 - LT.doc - 58 KB |
| Presentation - National Stock Exchange of Lithuania - February 11, 2004 - LT.ppt - 206 KB |
| CV - Algirdas Peksys - February 2004 - LT.doc - 529 KB |
| Roundtable Discussion - February 11, 2004.ppt - 202 KB |
| Roundtable Discussion - February 11, 2004 - LT.ppt - 205 KB |
| List of Participants - Corporate Governance Seminar - February 1, 2004.xls - 26 KB |
Thursday, February 5, 2004
Participation in IRRC’s 2004 Proxy Season Review: Corporate Governance and Responsible Voting
London, UK
On Thursday, February 5, 2004 Investor Responsibility Research Center (IRRC) held its 2004 Proxy Season Review: Corporate Governance and Responsible Voting in London, UK.
Participants included representatives of the financial press; a wide range of institutional investors, including foundations, insurance companies, investment funds and pension funds; non-governmental organizations engaged in climate change, corporate governance, corporate reporting, corporate social responsibility, socially responsible investment and other issues; and proxy voting service providers.
Mr. Geoffrey Mazullo, Director, PFS Program presented the PFS Program’s surveys of online investor relations and surveys of reporting on corporate social responsibility in eight Central and Eastern European countries. Other sessions covered issues including climate change, corporate governance in the United States, the ISC Code and governance developments in the United Kingdom.
For more information, please visit the IRRC website.
Thursday, January 29, 2004
Participation in the first annual IR Magazine Russia Conference and Awards
Moscow, Russia
On Thursday, January 29, 2004 IR magazine and OSSI Association of Investor Relations Professionals held the first annual IR Magazine Russia Conference and Awards in Moscow, Russia.
Representatives of Russian listed companies, stock exchanges, brokerage firms, investment banks, investor relations service providers, law firms and public relations firms attended the event.
At the conference, Mr. Geoffrey Mazullo, Director, PFS Program presented the PFS Program’s surveys of online investor relations and surveys of reporting on corporate social responsibility in eight Central and Eastern European countries. He also participated in a panel discussion on corporate governance and another panel discussion on best practices in investor relations. Other sessions covered issues including disclosure, online investor relations, the role of foreign investors/foreign investment in shaping investor relations and the value of shareholder identification/investor targeting.
In the evening, awards were presented for best practice in a variety of categories. For more information, please visit the Winners – Russia 2004 page of IR magazine’s website.
Tuesday, January 13, 2004 - Wednesday, January 14, 2004
Participation in the 9th Euromoney Central and Eastern European Forum: Competing in a New Europe
Vienna, Austria
On Tuesday, January 13, 2004 Mr. Geoffrey Mazullo, Director, PFS Program moderated a panel entitled, “Developing Capital Markets in CEE” at the 9th Euromoney Central and Eastern European Forum. Representatives of banks, credit rating agencies and financial advisory firms from Croatia, Kazakhstan, Poland, Romania, the United Kingdom and the United States participated in a roundtable discussion of the following topics: How successful have countries been in developing domestic bond markets? Is there a trend across the region towards one-stop financial supermarkets or a trend towards diversified/specialized financial institutions? How does this compare with trends in current European Union (EU) member states? How do credit rating agencies view such trends, and how would they rate a financial supermarket versus a specialized institution? What prerequisites are necessary for developing a mortgage market? What is happening in the area of pension reform? and What are the prospects for lending to small and medium-size enterprises (SMEs)?
Over 800 persons attended the two-day event featuring presentations and panel discussions on a wide range of economic, financial and public policy issues. For detailed information, please visit the website of Euromoney conferences.
Thursday, January 1, 2004
United States Department of State and EWMI Commence Joint Financing of the PFS Program in the Three Baltic Republics
Washington, DC and Budapest, Hungary
The United States Department of State and EWMI commenced joint financing of the PFS Program in the three Baltic Republics - Estonia, Latvia and Lithuania - on January 1, 2004. The PFS Program is scheduled to continue activities through June 30, 2004.
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