Standards Working
g Group
p
Global Investors Study
Final results
August 2009
J34689
Methodology
ƒ 402 interviews were conducted by telephone (CATI) between
23rd March - 21st April 2009
– The sample consisted of Chief Investment Officers,
Officers Portfolio Managers,
Managers
Directors of Research*, and Analysts* that were obtained using IPREO BD
Corporate databases
– *These
These two positions were only used in India,
India China,
China and Hong Kong due to
limited sample availability
ƒ Research was conducted in the following nine countries:
United
Ki d
Kingdom,
U i d States
United
S
(
(75
i
interviews),
i
) France
F
( 0 interviews),
(50
i
i
) Germany
G
( 0
(50
interviews), Japan (50 interviews), China (26 interviews), Hong Kong (26 interviews),
India (25 interviews), and Singapore (25 interviews).
ƒ All figures are percentages unless otherwise stated. Where
percentages do not sum to 100% may be due to rounding or
inclusion of multiple responses
Source: Ipsos MORI
2
Sample
ƒ The sample for this study was obtained using the IPREO BD
Corporate database in March 2009:
ƒ Previous experience with IPREO BD Corporate leads us to believe it is the best
available source for analysts and other financial roles
ƒ There are however, a finite number of leads in certain countries
ƒ We searched for individuals covering equity within buy and/or
sell side firms.
ƒ In order to ensure the correct individuals were contacted, we
searched for the following job functions/roles:
ƒ Chief Investment Officer and Portfolio Manager
ƒ Director of Research and Analyst we included in India, China, and Hong Kong,
as the pool of potential respondents is smaller
Source: Ipsos MORI
3
Sample (cont’d)
ƒ There are a finite number of individuals that fit these job
descriptions available in each country, and as such, 400
completes
co
p etes was
as dete
determined
ed to be a
an a
ample
p e representation
ep ese tat o o
of tthe
e
group.
ƒ The countries involved are the UK, US, France, Germany,
Japan, India, Singapore, China, and Hong Kong.
ƒ In some countries, the entire available sample was used as
there were just enough potential respondents:
ƒ China, Hong Kong, Japan, and India
ƒ IIn the
h remainder
i d off the
h countries,
i
a relevant
l
proportion
i
were
chosen randomly (1/n) so they did not over-saturate the
feedback:
ƒ UK, US, France, Germany, and Singapore
Source: Ipsos MORI
4
Respondent role
Yes - buy/sell
Q. Do you buy, sell
or analyse
l
shares
h
or securities on
behalf of your
organisation?
Yes - analyse
Both
86%
72%
58%
Respondents had option to select multiple responses
Base: all respondents (402)
Source: Ipsos MORI
5
The economic crisis
G20 principles as an appropriate strategic
priority
Q1. To what extent
d you agree
do
or disagree that
the following
G20 principles
are an
appropriate
strategic
priority?
% Strongly agree
% Tend to agree
% Neither agree or disagree
% Tend to disagree
% Strongly disagree
% Don’t know
Strengthening transparency and
accountability in financial markets
including a number of short term actions
concerning accounting standards.
Enhancing regulation
regulation, including regulatory
regimes, prudential oversight and risk
management, to include transparent
assessments of national regulatory
systems.
44
39
Promoting integrity in financial markets,
including preventing fraudulent activities
and abuse.
R i f i international
Reinforcing
i t
ti
l cooperation
ti
among national and regional regulators,
including consistent formulation of
regulations and other measures.
41
43
58
40
7 521
11 43
29
45
7 411
10 41
Base: all respondents (402)
Source: Ipsos MORI
7
G20 principles as an appropriate strategic
priority (by country)
Q1.1To what extent
d you agree
do
or disagree that
the following
G20 principles
are an
appropriate
strategic
priority?
Strengthening
p
y
transparency
and
accountability in
financial
markets
including a
number of short
term actions
concerning
accounting
standards.
% Strongly agree
% Tend to agree
% Neither agree or disagree
% Tend to disagree
% Strongly disagree
% Don’t know
40
47
UK
US
49
43
France
70
Germany
22
56
56
8
18
20
48
China
50
38
4 4
44
22
India
Hong Kong
3 41
22
52
Japan
Singapore
34 7 1
16
28
27
22
2
2
4 4
12
12
4
8
54
4
8
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
8
G20 principles as an appropriate strategic
priority (by country)
Q1.2To what extent
d you agree or
do
disagree that the
following G20
principles are an
appropriate
strategic priorit
priority?
?
Enhancing
regulation,
including
regulatory
regimes
regimes,
prudential
oversight and risk
management, to
include
p
transparent
assessments of
national
regulatory
systems.
% Strongly agree
% Tend to agree
% Neither agree or disagree
% Tend to disagree
% Strongly disagree
% Don’t know
47
UK
US
36
64
Germany
22
India
24
China
Hong Kong
40
20
48
8
28
54
46
22
16
44
31
24 4
16
62
16
8
8 3 41
26
40
Japan
4 5
48
France
Singapore
36
8
12
35
4
4
19
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
9
G20 principles as an appropriate strategic
priority (by country)
Q1.3To what extent
d you agree
do
or disagree that
the following
G20 principles
are an
appropriate
strategic
priority?
Promoting
g y in
integrity
financial
markets,
including
preventing
fraudulent
activities and
abuse.
% Strongly agree
% Tend to agree
% Neither agree or disagree
% Tend to disagree
% Strongly disagree
% Don’t know
64
UK
France
16
64
Japan
40
52
44
42
4 222
4
4 4 4
24
42
62
10
14
36
24
4
6
26
42
India
Hong Kong
24
68
Germany
China
4 4 34
72
US
Singapore
21
4 4
12
4
38
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
10
G20 principles as an appropriate strategic
priority (by country)
Q1.4To what extent
d you agree
do
or disagree that
the following
G20 principles
are an
appropriate
strategic
priority?
Reinforcing
international
cooperation
among national
and regional
regulators,
including
consistent
formulation of
regulations and
other measures.
% Strongly agree
% Tend to agree
% Neither agree or disagree
% Tend to disagree
% Strongly disagree
% Don’t know
41
44
UK
US
37
43
France
24
54
India
16
Singapore
16
2
14
64
16
60
46
14
8
60
42
8 1
38
26
Japan
Hong Kong
11
60
Germany
China
12 11
4
24
50
4 4
50
4
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
11
Necessity of a consistent approach
Strongly
disagree, 4%
Q2a. The financial
crisis
i i off 2008
demonstrates
the need for a
more globally
consistent
approach to
standards,
regulation and
enforcement in
such areas as
accounting,
accounting
auditing and
ethics and
supervision…
Tend to
disagree 9%
disagree,
Strongly
agree, 33%
Neither
N
ith agree
or disagree,
18%
Tend to
agree 36%
agree,
Base: all respondents (402)
Source: Ipsos MORI
12
Necessity of a consistent approach
(by country)
Q2a. The financial
crisis
i i off 2008
demonstrates
the need for a
more globally
consistent
approach to
standards,
regulation and
enforcement in
such areas as
accounting
accounting,
auditing and
ethics and
supervision…
% Strongly agree
% Tend to agree
% Neither agree or disagree
% Tend to disagree
% Strongly disagree
% Don’t know
32
UK
US
27
France
37
15
38
20
China
23
31
17
4
24 4
6
30
52
24
51
14
40
Singapore
11
32
34
India
Hong Kong
20
58
Germany
Japan
31
8
8 2
24
20
44
4
28
31
4
35
50
12
15
4
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
13
Do variations in quality increase cost?
Strongly
disagree, 5%
Q4.
Variations in
th quality
the
lit off
this framework
of standards,
rules and
regulations in
various
ario s
countries
increases the
cost of capital
for
companies
companies…
Tend to
disagree,
12%
Don't know,
2%
Strongly
agree, 25%
Neither agree
or disagree,
19%
Tend to
agree, 37%
Base: all respondents (402)
Source: Ipsos MORI
14
Do variations in quality increase cost?
(by country)
Q4.
Variations in
th quality
the
lit off
this framework
of standards,
rules and
regulations in
various
ario s
countries
increases the
cost of capital
for
companies
companies…
% Strongly agree
% Tend to agree
% Neither agree or disagree
% Tend to disagree
% Strongly disagree
% Don’t know
28
UK
US
France
40
25
33
20
Germany
19
42
26
28
48
India
24
44
China
Hong Kong
35
5 4
10
4 6
16
14
42
8
8
24
28
31
5
13
24
22
16
11
18
Japan
Singapore
16
28
38
31
16
15
15
8
8
4
12
4
19
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
15
Necessity of clear separation
Q5.
There should
b clear
be
l
separation
between
requirements
of financial
reporting and
prudential
reporting…
Strongly
disagree, 7%
Don't know,
3%
Strongly
agree, 18%
Tend to
disagree,
17%
Tend to
agree, 37%
Neither
N
ith agree
or disagree,
18%
Base: all respondents (402)
Source: Ipsos MORI
16
Necessity of clear separation (by country)
Q5.
There should
b clear
be
l
separation
between
requirements
of financial
reporting and
prudential
reporting…
% Strongly agree
% Tend to agree
% Neither agree or disagree
% Tend to disagree
% Strongly disagree
% Don’t know
UK
15
US
15
France
India
Singapore
19
35
13
28
Germany
Japan
41
20
10
27
Hong Kong
27
4 2
20
42
20
16
56
China
12
35
15
46
7
18
28
56
12
8 3
9
8
16
28
16
21
40
16
15
8
12
12
15
4
8
12
8
4
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
17
Demands of market for transparency
Q6.
How concerned
are you that
th t
there is a
potential
conflict
between the
demands of the
market for
transparency in
financial
reporting and
the
requirements of
regulators to
ensure financial
stability through
prudential
reporting?
Not at all
concerned,
15%
Don't know,
2%
Very
concerned
concerned,
15%
Fairly
concerned
36%
Not veryy
concerned,
32%
Base: all respondents (402)
Source: Ipsos MORI
18
Demands of market for transparency
(by country)
Q6.
How concerned
are you that
th t
there is a
potential conflict
between the
demands of the
market for
transparency in
financial
reporting and
the
requirements of
regulators to
ensure financial
stability through
prudential
reporting?
% Very concerned
% Fairly concerned
% Not at all concerned
% Don’t know
13
UK
32
US
19
France
20
Germany
Japan
44
12
Singapore
24
15
13
28
22
16
28
46
19
2
14
24
40
1
6 2
32
36
35
3
28
42
24
23
32
42
India
Hong Kong
29
35
6
China
% Not very concerned
8
12
54
8
8
4
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
19
Fraud prevention
Q8.
A number of
significant
i ifi
t
alleged frauds
have emerged
since the crisis
began. What do
you
o think are
the priority
steps that could
be taken to
improve fraud
prevention
prevention,
taking into
account
cost/benefit
considerations?
(top mentions)
M
More
regulation/more
l ti /
resources ffor
regulatory enforcement
18%
13%
T
Transparency
Better enforcement of existing
regulations
Better reporting / audit / accounting /
risks / controls / tests / standards
Fraud cannot be prevented
10%
9%
8%
Respondents could state more than one response
Base: all respondents (402)
Source: Ipsos MORI
20
Fraud prevention (by country)
Total
UK
US
France
Germany
Japan
India
Singapore
China
Hong
Kong
More regulation/more
resources for
f
regulatory
enforcement
18
29
20
12
18
-
4
4
46
12
Transparency
p
y
13
16
15
12
8
2
20
8
12
27
Better enforcement of
existing regulations
10
11
16
18
12
-
-
4
4
8
Better reporting / audit
/ accounting / risks /
controls / tests /
standards
9
17
5
10
10
-
28
12
-
-
Fraud cannot be
prevented
8
7
8
8
24
2
-
4
8
8
Responses in %
ƒ Top mention in Japan - Effectively enforced dissuasive penalties in law for fraud (20%)
ƒ Top mention in Singapore - More intensive scrutiny of audited financial statements by regulators
and other third parties (28%)
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
21
Fraud prevention
“The compensation
of the top
management
should be aligned
with the long-term
performance of the
company.”
“To establish a better
system of remuneration
between the people who
takes risks and the leader
of the company.”
“Basically the entire
incentive structure in the
industry must change
drastically.”
“Constantly
Constantly
focusing on
compensation
structures
th
throughout
h t th
the
industries.”
“There has to be some
amount of control on
bonuses that y
you g
get for
your performance,
because this is purely
linked to short term
sales or short term
profitability targets.
targets ”
Source: Ipsos MORI
22
Clarity for investors and companies
Q9.
To what extent
d you agree or
do
disagree that
there is
insufficient
clarity for
in estors and
investors
for companies
about which
measures
would be most
effective in
effective,
terms of both
quality and
cost, for
preventing
fraud?
Strongly
disagree, 7%
Don't know,
3%
Strongly
agree, 18%
Tend to
disagree,
13%
Neither agree
or disagree,
g ,
21%
Tend to
agree,
g , 38%
Base: all respondents (402)
Source: Ipsos MORI
23
Clarity for investors and companies
(by country)
Q9.
To what extent
d you agree
do
or disagree
that there is
insufficient
clarity for
in estors and
investors
for companies
about which
measures
would be most
effective in
effective,
terms of both
quality and
cost, for
preventing
fraud?
% Strongly agree
% Tend to agree
% Neither agree or disagree
% Tend to disagree
% Strongly disagree
% Don’t know
UK
19
US
21
France
20
Germany
Japan
38
6
16
40
42
15
31
6
6 4
8
50
4
14
24
36
41
14
16
56
15
8
16
18
40
40
8
11
25
40
4
12
32
10
China
Hong Kong
24
24
India
Singapore
27
12
4
8
8
4
8
8
4
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
24
Accounting
g & Auditing
g Standards
Benefits of global accounting standards
Greater comparability of financial
information
Q10. What would be
th b
the
benefits,
fit if
any, of a single,
global,
consistent set
of accounting
standards?
(top mentions)
58%
Greater transparency of financial
information
32%
Greater cross-border investment
24%
Increased credibility of emerging
market entities
18%
Lower cost of capital
p
Clearer and more concise
information
Greater consistency / uniformity
None/limited
17%
8%
5%
8%
Respondents had option to select multiple responses
Base: all respondents (402)
Source: Ipsos MORI
26
Benefits of global accounting standards
(by country)
Responses in %
Total
UK
US
France
Germany
Japan
India
Singapore
China
Hong
Kong
Greater comparability
of financial information
58
43
39
60
66
90
92
100
38
31
Greater transparency
of financial information
32
17
17
18
34
36
68
76
46
42
Greater cross-border
investment
24
15
16
4
4
54
60
80
12
15
Increased credibility of
emerging market
entities
18
1
3
2
-
54
76
80
12
-
Lower cost of capital
17
15
11
2
6
20
44
60
23
19
Clearer and more
concise information
8
13
9
12
4
-
-
-
4
31
Greater consistency /
uniformity
5
9
9
12
2
-
-
-
-
4
N
None/limited
/li i d
8
11
13
10
2
4
-
-
19
4
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
27
Benefits of International Standards on
Auditing
Greater comparability/transparency
of audited financial information
Q11. What would be
th b
the
benefits,
fit if
any, of a single,
global,
consistent set
of auditing
standards ssuch
standards,
ch
as International
Standards on
Auditing issued
by the
International
Auditing and
Assurance
Standards
Board?
(top mentions)
57%
A clearer
l
understanding
d t di off
auditors' responsibilities’ and work
20%
Greater cross-border investment
19%
Increased credibility of financial
information reported on by auditors
17%
Lower cost of capital
p
15%
Mutual recognition of audits by
regulators
15%
Reduced
R
d
d costt off complying
l i with
ith
multiple or different standards
15%
Consistency / uniformity
4%
Respondents had option to select multiple responses
Base: all respondents (402)
Source: Ipsos MORI
28
Benefits of International Standards on
Auditing (by country)
Total
UK
US
France
Germany
Japan
India
Singapore
China
Hong
Kong
57
48
39
50
62
82
88
96
50
35
20
8
17
8
4
30
64
68
19
12
Greater cross-border
investment
19
7
11
-
-
52
60
68
15
8
Increased credibility of
fi
financial
i l information
i f
i
reported on by auditors
1
17
-
3
2
4
46
80
60
12
8
Lower cost of capital
15
11
8
-
6
20
44
48
27
15
Mutual recognition of
audits by regulators
15
1
4
-
2
28
72
84
4
8
Reduced cost of
complying
p y g with multiple
p
or different standards
15
3
3
-
6
32
60
80
4
-
Responses in %
Greater comparability/
transparency of audited
financial information
A clearer understanding
of auditors'
responsibilities’ and
work
ork
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
29
Benefits of International Ethics Standards
for accountants
Q12. What would be
th b
the
benefits,
fit if
any, of a single,
global,
consistent set of
ethics and
independence
standards for
auditors, such
as international
standards on
ethics and
independence
issued by the
International
Ethics
Standards
Board for
accountants?
(top mentions)
Greater clarity for investors and
others on the meaning of auditors'
independence
67%
Reduced complexity for audit
committees, auditors and regulators
in applying a common
independence code
Greater understanding of the
interaction between independence
rules and choice in the audit market
and adoption of an agreed global
position
57%
44%
Respondents had option to select multiple responses
Base: all respondents (402)
Source: Ipsos MORI
30
Benefits of International Ethics
Standards for accountants (by country)
Greater clarity for investors and others on the meaning of auditors' independence
Reduced complexity for audit committees, auditors and regulators in applying a common independence
code
Greater understanding of the interaction between independence rules and choice in the audit market
and adoption of an agreed global position
96%
78%
72%
65%
61%
58%
53%
72%
51%
37%
UK
81%
76%
72%
56%
43%
28%
US
88%
80%
54%
40%
28%
France
64%
Germany
26%
Japan
72%
India
68%
Singapore
54%
China
73%
Hong
K
Kong
Respondents had option to select multiple responses
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
31
Support for interim solution for auditing
foreign subsidiaries in group audits
Strongly
oppose, 4%
Q13. One interim
solution
l ti th
thatt h
has
been suggested
is for regulators
to allow the
International
Ethics
Standards
Board standards
to be used in
the audit of
foreign
subsidiaries in
group audits.
How strongly
would you
support such a
move?
Don't know,
3%
Strongly
support, 15%
Tend
T
d to
t
oppose, 4%
Neither
support or
oppose, 31%
Tend to
support, 43%
Base: all respondents (402)
Source: Ipsos MORI
32
Support for interim solution for auditing foreign
subsidiaries in group audits (by country)
Q13. One interim
solution
l ti th
thatt
has been
suggested is
for regulators
to allow the
International
Ethics
Standards
Board
standards to
be used in the
audit of foreign
subsidiaries in
group audits.
How strongly
would you
support such a
move?
% Strongly support
% Tend to support
% Neither support nor oppose
% Tend to oppose
% Strongly oppose
% Don’t know
UK
US
12
41
17
France
Germany
47
24
China
15
23
4 4 4
42
50
36
16
8
34
40
Singapore
4
3 8 3
30
50
India
9
23
34
10
Japan
Hong Kong
25
6 4
36
40
24
40
54
38
4
4
27
4
38
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
33
Financial & Non-financial Reporting
p
g
Information sources when making
judgements
% Very important
(9-10)
Q15. How important
are the
th
following as a
source of
information
when making
j dgements
judgements
about different
organisations?
% Not Important
(1-6)
% Fairly important
(7-8)
Don't know
Financial performance measures
65
25
10
Disclosures about off-balance sheet
entities
63
28
9
Management's
g
commentary
y on the
business' performance
43
35
22
Management's commentary on risks facing
the business
41
36
23
Compensation/incentivisation
p
of senior
executives
28
Non-financial performance indicators
E i
Environmental
t l performance
f
indicators
i di t
17
6
Sustainability and/or climate change
5
information
39
33
40
22
19
42
1
72
75
1
Base: all respondents (402)
Source: Ipsos MORI
35
Information sources when making
judgements (by country)
% Very important
(9-10)
Q15. How important
are the
th
following as a
source of
information
when making
j dgements
judgements
about different
organisations?
Financial
performance
measures
% Fairly important
(7-8)
76
6
UK
US
73
52
F
France
28
60
Germany
Hong Kong
1
17
7
21
5
28
10 2
48
28
35
54
8
12
64
42
2
8
40
Singapore
China
Don't know
18
84
Japan
India
% Not Important
(1-6)
8
23
35
12
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
36
Information sources when making
judgements (by country)
% Very important
(9-10)
Q15. How important
are the
th
following as a
source of
information
when making
j dgements
judgements
about different
organisations?
Non-financial
performance
indicators
11
UK
US
F
France
36
35
6
28
Singapore
28
Hong Kong
4
2
36
30
48
24
36
36
58
19
2
42
34
India
China
50
48
Japan
1
41
42
8
Don't know
52
2
24
Germany
% Not Important
(1-6)
% Fairly important
(7-8)
27
38
54
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
37
Information sources when making
judgements (by country)
% Very important
(9-10)
Q15. How important
are the
th
following as a
source of
information
when making
j dgements
judgements
about different
organisations?
Disclosures
about off
offbalance sheet
entities
% Fairly important
(7-8)
US
36
7
20
64
26
52
8 2
32
16
80
India
16
72
Singapore
4
24
44
Japan
Hong Kong
23
69
Germany
China
Don't know
73
3
UK
F
France
% Not Important
(1-6)
38
4
24
4
58
73
4
19
8
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
38
Information sources when making
judgements (by country)
% Very important
(9-10)
Q15. How important
are the
th ffollowing
ll i
as a source of
information
when making
judgements
abo t different
about
organisations?
Compensation/
incentivisation
of senior
executives
3
37
UK
US
F
France
Hong Kong
35
42
50
28
46
16
48
28
32
20
54
42
2
52
44
15
2
24
32
28
Singapore
China
29
33
6
India
Don't know
33
32
Germany
Japan
% Not Important
(1-6)
% Fairly important
(7-8)
31
50
8
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
39
Information sources when making
judgements (by country)
% Very important
(9-10)
Q15. How important
are the
th
following as a
source of
information
when making
j dgements
judgements
about different
organisations?
Sustainability
and/or climate
change
information
21
UK
US
F
France
Germany
Japan
5
2
China
Hong Kong
82
22
2
70
18
12
12
19
2
80
32
15
Don't know
79
14
2
4
% Not Important
(1-6)
79
9
16
6
India
Singapore
% Fairly important
(7-8)
56
84
23
15
62
62
4
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
40
Information sources when making
judgements (by country)
% Very important
(9-10)
Q15. How important
are the
th ffollowing
ll i
as a source of
information
when making
judgements
abo t different
about
organisations?
Environmental
performance
indicators
UK
1
16
US
3
13
F
France
Germany
India
16
Singapore
4
China
4
66
24
16
2
72
2
30
54
24
20
60
76
27
15
Don't know
84
26
2
% Not Important
(1-6)
84
6
Japan
Hong Kong
% Fairly important
(7-8)
69
23
62
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
41
Information sources when making
judgements (by country)
% Very important
(9-10)
Q15. How important
are the
th
following as a
source of
information
when making
j dgements
judgements
about different
organisations?
Management’s
commentary
on risks facing
the business
33
UK
US
39
F
France
40
36
25
42
40
Singapore
40
23
18
24
48
India
Hong Kong
31
68
Japan
Don't know
36
Germany
China
% Not Important
(1-6)
% Fairly important
(7-8)
22
30
44
24
16
36
54
31
6 2
23
50
19
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
42
Information sources when making
judgements (by country)
% Very important
(9-10)
Q15. How important
are the
th
following as a
source of
information
when making
j dgements
judgements
about different
organisations?
Management’s
commentary
on the
business’s
performance
% Not Important
(1-6)
% Fairly important
(7-8)
UK
4
45
33
US
43
37
F
France
32
India
China
Hong Kong
34
50
28
18
35
31
6 2
32
52
52
Singapore
20
34
58
Japan
21
34
Germany
Don't know
20
24
24
38
27
50
19
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
43
Audit report length
Q16. Is your
preference
f
for
f
the longer or
shorter form
of an audit
report?
43%
Longer, more detailed report
41%
Short, succinct report
No strong opinion
Depends on circumstances
Audit committee should provide a
report to shareholders on matters
discussed with auditor
8%
5%
2%
Base: all respondents (402)
Source: Ipsos MORI
44
Audit report length (by country)
Total
UK
US
France
Germany
Japan
India
Singapore
China
Hong
Kong
Short, succinct report
41
59
41
48
48
28
24
28
46
12
Longer, more detailed
Longer
report
43
33
49
40
48
10
60
60
46
77
No strong opinion
8
4
8
4
4
30
4
4
4
4
Depends on
circumstances
5
1
1
8
-
18
8
8
4
8
Audit committee
should provide a
report to shareholders
on matters discussed
with auditor
2
3
-
-
-
14
4
-
-
-
Responses in %
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
45
Audit reports - most important matters
64%
Quality of financial information
Q17. If audit reports
were to
t be
b
longer, what
would be the
most important
matters that
you
o would
o ld like
to see
covered?
(top mentions)
Adequacy of accounting records
33%
26%
Directors' responsibilities
Quality of non-financial information
21%
Auditors' responsibilities
p
15%
Certain other items that may be
reported by auditors to audit
committees
9%
Other
3%
Don't know
3%
Respondents could select up to two options
Base: all respondents (402)
Source: Ipsos MORI
46
Audit reports - most important matters
(by country)
Total
UK
US
France
Germany
Japan
India
Singapore
China
Hong
Kong
Quality of financial
information
64
68
64
70
60
58
60
76
62
54
Adequacy of
accounting records
33
28
36
20
26
46
40
48
27
42
Directors'
responsibilities
26
17
19
36
48
22
28
8
42
19
Quality of nonfinancial information
21
9
15
28
36
28
24
24
23
15
Auditors'
responsibilities
15
12
9
24
16
26
8
8
19
12
Certain other items
that may be reported
by auditors to audit
committees
9
4
9
4
8
4
16
24
19
15
Other
3
7
4
2
-
-
8
4
-
-
Don’tt know
Don
3
5
8
-
2
-
-
-
-
4
Responses in %
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
47
Audit reports - most important matters
62%
Quality of financial information
Q17. If audit reports
were to
t be
b
longer, what
would be the
most important
matters that
you
o would
o ld like
to see
covered?
(top mentions)
Adequacy of accounting records
29%
24%
Quality of non-financial information
22%
Directors' responsibilities
Auditors' responsibilities
p
Among those
that prefer a
short,
succinct
report.
Certain other items that may be
reported by auditors to audit
committees
16%
5%
Other
3%
Don't know
3%
Respondents could select up to two options
Base: Those that prefer a short, succinct report (165)
Source: Ipsos MORI
48
Audit reports - most important matters
66%
Quality of financial information
Q17. If audit reports
were to
t be
b
longer, what
would be the
most important
matters that
you
o would
o ld like
to see
covered?
(top mentions)
Among those
that prefer a
longer, more
detailed
report.
Adequacy of accounting records
38%
31%
Directors' responsibilities
Quality of non-financial information
20%
Auditors' responsibilities
p
14%
Certain other items that may be
reported by auditors to audit
committees
14%
Other
Don't know
3%
0%
Respondents could select up to two options
Base: Those that prefer a longer report (173)
Source: Ipsos MORI
49
Future importance of information about
environmental performance
A lot less
important, 2%
Q18.Thinking about
environmental
i
t l
performance
reporting, do
you believe
information
abo t
about
environmental
performance will
become more
important or
less important
to investors, or
will it stay the
same over the
next 10 years?
Don't know,
2%
A little less
i
important,
t t 3%
A lot more
important,
28%
No
change/stay
about the
same, 26%
A little more
important,
%
39%
Base: all respondents (402)
Source: Ipsos MORI
50
Future importance of information about
environmental performance (by country)
Q18.Thinking about
environmental
i
t l
performance
reporting, do
you believe
information
abo t
about
environmental
performance
will become
more
important or
less important
to investors, or
will it stay the
same over the
next 10 years?
% A lot more important
% A little more important
% A little less important
% A lot less important
UK
24
US
25
France
29
33
26
40
Japan
24
44
China
Hong Kong
39
44
Germany
40
Singapore
36
27
19
5 4 4
35
42
India
% No change / stay
about the same
% Don’t know
1
30
4
22
28
20
2
12
4 6
28
4
36
58
8
8
69
4 4
8
4
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
51
Global set of environmental reporting
standards
Q19. Would a
globally
l b ll
consistent set
of standards
on
environmental
reporting b
by
companies
help to
improve
reporting in
this area?
Don’t know,
4%
Yes, for listed
and public
interest only,
29%
No, 16%
No, I am
confident that
reporting is
consistent
already, 9%
Yes for all
entities 42%
entities,
Base: all respondents (402)
Source: Ipsos MORI
52
Global set of environmental reporting
standards (by Q18)
Q19. Would a
globally
l b ll
consistent set
of standards
on
environmental
reporting b
by
companies
help to
improve
reporting in
this area?
% Yes
Yes, for listed
and public entities
only
% Yes
Yes, for all
entities
% No
No, I am confident
that reporting is
consistent already
% No
% Don’t know
% Unanswered
…more
important
at Q
Q18
10%
5%
…less
important at
Q18
Q
5%
3%
10%
32%
33%
33%
50%
19%
Base: respondents stating information about environmental performance will become: more important (271), less important (21)
Source: Ipsos MORI
53
Global set of environmental reporting
standards (by country)
% Yes for listed
and public interest
entities only
Q19. Would a
globally
l b ll
consistent set
of standards
on
environmental
reporting b
by
companies
help to
improve
reporting in
this area?
% No
US
23
France
22
Singapore
% Don't know
% Unanswered
37
13
37
15
5
18
8
4
44
12
48
China
31
Hong Kong
31
24
8
4 4
12
8
24
54
42
2
16
56
36
10
24
28
28
7
27
64
Japan
India
% No
No, I am confident that
reporting is consistent
already
28
UK
Germany
%Y
Yes, ffor allll
entities
4
15
4
15
8
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
54
Global set of environmental reporting
standards (by responsibility)
Q19. Would a
globally
l b ll
consistent set
of standards
on
environmental
reporting b
by
companies
help to
improve
reporting in
this area?
% Yes
Yes, for listed
and public entities
only
% Yes
Yes, for all
entities
% No
No, I am confident
that reporting is
consistent already
% No
% Don’t know
% Unanswered
…responsible for
corporate
reporting/governance
matters
…not responsible for
corporate
reporting/governance
matters
1%
3%
23%
5%
27%
29%
13%
7%
13%
34%
45%
Base: responsible for corporate reporting/governance matters (100), not responsible for corporate reporting/governance matters (301)
Source: Ipsos MORI
55
Corporate
p
Reporting
p
g
Suggestions to make corporate reporting
more transparent
Consistency / standardisation of
report layout
Q20. Top three
suggestions
ti
for
f
how corporate
reporting can
be made more
transparent and
easier for users
sers
to understand
without
resorting to
excessive
disclosure?
(top mentions)
11%
M
More
disclosure
di l
off off
ff balance
b l
sheet
h t
entities
6%
More information / explanations
6%
Stable / consistent accounting rules
and/or standards
5%
Clearer wording, more
i lifi ti
more charts
h t
simplification,
5%
More disclosure on risk
5%
Short, succinct reports
5%
Don’t know/None
28%
Respondents could state more than one response
Base: all respondents (402)
Source: Ipsos MORI
57
Suggestions to make corporate reporting
more transparent - UK
Consistency / standardisation of
report layout
Q20. Top three
suggestions
ti
for
f
how corporate
reporting can
be made more
transparent and
easier for users
sers
to understand
without
resorting to
excessive
disclosure?
(top mentions)
15%
M
More
disclosure
di l
off off
ff balance
b l
sheet
h t
entities
11%
More disclosure/more frequent
disclosure
8%
More disclosure on risk
8%
More disclosure on liabilities/debt
li biliti / t t
liabilities/structure
7%
Stable / consistent accounting rules
and/or standards
5%
More information/
details/explanation/notes
5%
Don’t know/None
28%
Respondents could state more than one response
Base: UK (75)
Source: Ipsos MORI
58
Suggestions to make corporate reporting
more transparent - US
Consistency / standardisation of
report layout
Q20. Top three
suggestions
ti
for
f
how corporate
reporting can
be made more
transparent and
easier for users
sers
to understand
without
resorting to
excessive
disclosure?
(top mentions)
17%
St bl / consistent
Stable
i t t accounting
ti rules
l
and/or standards
12%
More disclosure of off balance sheet
entities
12%
Clear/less jargon/simplification/
more charts
9%
Reporting should be
quarterly/greater
t l /
t frequency
f
7%
More information/
details/explanation/notes
7%
More information on source of revenue
/ earnings/business performance
Don’t know/None
5%
23%
Respondents could state more than one response
Base: US (75)
Source: Ipsos MORI
59
Suggestions to make corporate reporting
more transparent - France
14%
Short/shorter/succinct reports
Q20. Top three
suggestions
ti
for
f
how corporate
reporting can
be made more
transparent and
easier for users
sers
to understand
without
resorting to
excessive
disclosure?
(top mentions)
M
More
disclosure
di l
off off
ff balance
b l
sheet
h t
entities
12%
Include company strategy/objectives
12%
Consistency/standardisation of
report layout
8%
More information/
d t il /
details/explanation/notes
l
ti / t
6%
Clearer, more succinct reports and
information
6%
Clear/less
jargon/simplification/
more charts
6%
Don’t know/None
28%
Respondents could state more than one response
Base: France (50)
Source: Ipsos MORI
60
Suggestions to make corporate reporting
more transparent - Germany
Q20. Top three
suggestions
ti
for
f
how corporate
reporting can
be made more
transparent and
easier for users
sers
to understand
without
resorting to
excessive
disclosure?
(top mentions)
More information/
details/explanation/notes
10%
Consistency/standardisation
C
i t
/ t d di ti off
report layout
10%
Short/shorter/succinct reports
8%
More disclosure on risk
8%
Clearer, more succinct reports and
i f
information
ti
6%
Clear/less jargon/simplification/
more charts
4%
Accuracy/quality of the
information/data
4%
Don’t know/None
18%
Respondents could state more than one response
Base: Germany (50)
Source: Ipsos MORI
61
Suggestions to make corporate reporting
more transparent - Japan
Consistency / standardisation of
report layout
Q20. Top three
suggestions
ti
for
f
St bl / consistent
Stable
i t t accounting
ti rules
l
how corporate
and/or standards
reporting can
be made more
Clear/less jargon/simplification/
transparent and
more charts
easier for users
sers
More information on source of revenue/
to understand
earnings/business performance
without
resorting to
excessive
More disclosure on risk
disclosure?
(top mentions)
8%
6%
4%
4%
2%
Short/shorter/succinct reports
2%
Clearer more succinct reports and
Clearer,
information
2%
Don’t know/None
56%
Respondents could state more than one response
Base: Japan (50)
Source: Ipsos MORI
62
Suggestions to make corporate reporting
more transparent - India
20%
More disclosure on risk
Q20. Top three
suggestions
ti
for
f
R
Reporting
ti should
h ld b
be
how corporate
quarterly/greater frequency
reporting can
be made more More information on source of revenue/
transparent and
earnings/business performance
easier for users
sers
More disclosure on liabilities/debt
to understand
liabilities/structure
without
resorting to
excessive
Accuracy/quality of the
i f
information/data
ti /d t
disclosure?
(top mentions)
20%
16%
8%
8%
Consistency/standardisation of report
layout
4%
More disclosure of off balance
sheet entities
4%
Don’t know/None
16%
Respondents could state more than one response
Base: India (25)
Source: Ipsos MORI
63
Suggestions to make corporate reporting
more transparent - Singapore
Stable / consistent accounting rules
and/or standards
Q20. Top three
suggestions
ti
for
f
C
Consistency
i t
/ standardisation
t d di ti off
how corporate
report layout
reporting can
be made more
Clear/less jargon/simplification/
transparent and
more charts
easier for users
sers
Accuracy/quality of the
to understand
information/data
without
resorting to
excessive
More information on source of revenue/
earnings/business
i
/b i
performance
f
disclosure?
(top mentions)
12%
8%
8%
8%
8%
Include company strategy/
objectives
8%
More information on
assets/asset management
8%
Don’t know/None
32%
Respondents could state more than one response
Base: Singapore (25)
Source: Ipsos MORI
64
Suggestions to make corporate reporting
more transparent - China
More information/
details/explanation/notes
Q20. Top three
suggestions
ti
for
f
how corporate
reporting can
be made more
transparent and
easier for users
sers
to understand
without
resorting to
excessive
disclosure?
(top mentions)
23%
Cl
Clearer,
more succinct
i t reports
t and
d
information
12%
Clear/less jargon/simplification/
more charts
8%
Include company strategy/objectives
8%
Consistency/standardisation of
reportt layout
l
t
4%
Stable / consistent accounting rules
and/or standards
4%
More disclosure/more
frequent disclosure
4%
Don’t know/None
27%
Respondents could state more than one response
Base: China (26)
Source: Ipsos MORI
65
Suggestions to make corporate reporting
more transparent - Hong Kong
More disclosure/more frequent
disclosure
Q20. Top three
suggestions
ti
for
f
how corporate
reporting can
be made more
transparent and
easier for users
sers
to understand
without
resorting to
excessive
disclosure?
(top mentions)
23%
Consistency/standardisation
C
i t
/ t d di ti off
report layout
15%
12%
Short/shorter/succinct reports
Accuracy/quality of the
information/data
8%
More information/
d t il /
details/explanation/notes
l
ti / t
4%
More disclosure on liabilities/debt
liabilities/structure
4%
Clearer more succinct reports
Clearer,
and information
4%
Don’t know/None
19%
Respondents could state more than one response
Base: Hong Kong (26)
Source: Ipsos MORI
66
Length of corporate reporting
Q21. Some people
h
have
expressed
concerns that
corporate
reporting has
become too
voluminous,
resulting in a
lack of clarity
and useful
information for
investors. To
what extent do
you agree or
disagree that
this is the
case?
Strongly
disagree,
10%
Don't know,
1%
Strongly
agree 20%
agree,
Tend to
disagree
disagree,
23%
Tend to
agree, 28%
Neither agree
nor disagree,
18%
Base: all respondents (402)
Source: Ipsos MORI
67
Length of corporate reporting (by country)
Q21. Some people
h
have
expressed
concerns that
corporate
reporting has
become too
voluminous,
resulting in a
lack of clarity
and useful
information for
investors. To
what extent do
you agree or
disagree that
this is the
case?
% Strongly agree
% Tend to agree
% Neither agree or disagree
% Tend to disagree
% Strongly disagree
% Don’t know
17
UK
US
36
25
France
India
Singapore
China
Hong Kong
21
8
34
Germany
Japan
11
2
16
12
19
14
12
58
24
27
2
10
16
8
19
1
14
12
40
36
23
16
8
40
20
9
28
28
26
27
12
24
19
19
4
20
8
31
27
8
4 4
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
68
Corporate reporting information that can
be dropped
Q22. What
i f
information
ti
could be
dropped without
a loss of value?
(top mentions)
Unnecessary / unimportant
information
10%
Generally shorter and more succinct
10%
Information on accounting
standards
4%
Corporate governance / share
ownership information
4%
Environmental / sustainability
i f
information
ti
3%
Social / economic data
3%
Management report/speeches
3%
History/historical
3%
Respondents could state more than one response
Base: those who agree corporate reporting has become too voluminous (195)
Source: Ipsos MORI
69
Corporate reporting information that can
be dropped (by country)
Total
UK
US
France
Germany
Japan
India
Singapore
China
Hong
Kong
Unnecessary /
unimportant
p
information
10
8
6
19
6
18
10
8
18
8
Generally shorter and
more succinct
10
5
17
16
15
-
-
-
9
-
Information on
accounting standards
4
5
-
10
3
-
10
-
9
-
4
13
3
-
-
-
-
-
9
-
3
10
3
-
3
-
-
-
-
-
Social / economic data
3
5
3
6
3
-
-
-
-
-
Management
report/speeches
3
3
3
6
3
-
-
8
-
-
Hi t
History/historical
/hi t i l
3
3
3
10
-
-
-
-
-
-
Responses in %
Corporate governance /
share ownership
information
Environmental /
sustainability
information
Base: UK (40), US(35), France (31), Germany (33), Japan (11), India (10), Singapore (12), China (11), Hong Kong (12)
Source: Ipsos MORI
70
Risk management
g
and internal
controls
Disclosure around existence and
management of risk
Q23. Would you say
th t the
that
th amountt
of disclosure
around the
existence and
management of
risk in corporate
reports is
currently…?
Too much,
5%
Don't know,
4%
Too little,
51%
About right,
40%
Base: all respondents (402)
Source: Ipsos MORI
72
Disclosure around existence and
management of risk
% Too little
Q23. Would you say
th t the
that
th amountt
of disclosure
around the
existence and
management of
risk in corporate
reports is
currently…?
% About right
% Too much
…IFRS
countries
…non IFRS
countries
5%
5%
5%
51%
39%
% Don’t know
41%
3%
51%
Base: countries applying IFRS:UK, France, Germany, Hong Kong, Singapore (226), countries not applying IFRS: US, Japan, China,
and India (176)
Source: Ipsos MORI
73
Disclosure around existence and
management of risk (by country)
% Too little
Q23. Would you say
th t the
that
th
amount of
disclosure
around the
existence and
management
of risk in
corporate
reports is
currently…?
39
UK
US
Germany
54
Hong Kong
35
5 3
4 2
40
36
22
4 6
66
India
China
7 4
57
54
Singapore
% Don’t know
51
France
Japan
% Too much
% About right
10 2
68
56
28
28
4
73
69
4
12
23
23
4
4 4
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
74
Areas where more disclosure of risk is
wanted
Q24. In which areas
would
ld you lik
like
to see more
disclosure of
risks?
(top mentions)
Financial / Currency / Investment /
Debt risk
40%
17%
Off balance sheet risks
12%
Business / Reputation
Balance Sheets / Management
All areas
9%
8%
Economic / global
6%
Market
6%
Respondents could state more than one response
Base: those who agree there is too little disclosure around risk/risk management (205)
Source: Ipsos MORI
75
Areas where more disclosure of risk is
wanted (by country)
Responses in %
Total
UK
US
France
Germany
Japan
India
Singapore
China
Hong
Kong
Financial / Currency /
Investment / Debt risk
40
41
37
63
56
18
29
36
26
28
Off balance sheet risks
17
21
28
19
19
-
-
36
5
-
Business / Reputation
12
10
7
15
4
-
18
7
37
11
Balance Sheets /
Management
9
7
12
7
4
-
24
7
5
17
All areas
8
10
7
4
11
-
18
-
11
6
Economic / global
6
-
7
7
19
-
6
-
-
6
Market
6
14
5
15
7
-
-
-
-
-
Base: UK (29), US(43), France (27), Germany (27), Japan (11), India (17), Singapore (14), China (19), Hong Kong (18)
Source: Ipsos MORI
76
Types of controls
Q25. Internal controls
can be
b wide
id
ranging and
cover the whole
of an
enterprise.
Which of the
following types
of controls are
you primarily
concerned
with?
(top mentions)
All internal controls, including
controls over business operations
49%
Internal financial controls, such
as budgetary control
41%
Compliance controls
34%
Controls over published
financial reporting
28%
None
2%
No answer
2%
Respondents had option to select up to 2 responses
Base: all respondents (402)
Source: Ipsos MORI
77
Types of controls (by country)
Total
UK
US
France
Germany
Japan
India
Singapore
China
Hong
Kong
49
55
53
40
42
36
48
68
54
50
41
36
33
46
32
40
48
44
69
46
Compliance controls
34
25
35
20
34
44
40
40
35
46
Controls over
published financial
reporting
28
21
36
46
14
46
32
16
12
8
None
2
1
1
2
6
4
-
-
-
-
No answer
2
7
-
2
2
-
4
-
8
-
Responses in %
All internal controls,
including controls over
business operations
Internal financial
controls such as
controls,
budgetary control
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
78
Debate of scope of internal control reporting
Q26. Would you
supportt or
oppose further
debate/reconsi
deration of the
scope of
internal control
reporting
obligations,
with a view to
achieving
greater
consistency in
meeting
investors’
expectations?
Strongly
oppose, 4%
Don’t know,
10%
Strongly
support, 17%
Tend to
oppose, 4%
Neither
support nor
oppose 26%
oppose,
Tend to
support, 39%
Base: all respondents (402)
Source: Ipsos MORI
79
Debate of scope of internal control reporting
(by country)
% Strongly support
Q26. would you
supportt or
oppose further
debate/reconsi
deration of the
scope of
internal control
reporting
obligations,
with a view to
achieving
greater
consistency in
meeting
investors’
expectations?
% Tend to oppose
17
UK
US
16
Germany
16
China
Hong Kong
% Strongly oppose
% Don’t know
29
25
47
26
14
15
6 4
8
5 3
4 6
34
6 2
40
16
48
19
13
54
28
12
9
20
30
8
5
54
8
India
Singapore
% Neither support nor
oppose
23
France
Japan
% Tend to support
16
44
46
27
50
15
31
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
80
Confidence in companies’ risk management
Q27. In general, how
confident
fid t are
you that
companies’ risk
management
systems over
acco nting and
accounting
financial
reporting are
able to identify
and report
impending
problems to…
% Very confident
% Not at all confident
% Fairly confident
% Don’t know
…boards
3%
% Not very
confident
…shareholders
2%
5%
12%
3%
19%
31%
42%
38%
45%
Base: all respondents (402)
Source: Ipsos MORI
81
Confidence in companies’ risk management
(by country)
% Very confident
Q27. In general,
h
how
confident
fid t
are you that
companies’
risk
management
s stems o
systems
over
er
accounting and
financial
reporting are
able to identify
and report
impending
problems to…
boards
% Fairly confident
% Not very confident
% Don’t know
% Not at all confident
UK
4
US
1
France
Singapore
30
4
Hong Kong
40
36
27
1
10
28
8
20
40
20
35
58
6
4
40
54
4
13
28
54
China
1
54
44
4
17
48
14
India
25
36
6
Germany
Japan
52
10
8
4
8
4
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
82
Confidence in companies’ risk management
(by country)
% Very confident
Q27. In general,
h
how
confident
fid t
are you that
companies’
risk
management
s stems o
systems
over
er
accounting and
financial
reporting are
able to identify
and report
impending
problems to…
shareholders
% Fairly confident
% Not very confident
% Don’t know
% Not at all confident
UK
1
US
3
41
28
45
52
France
6
22
Germany
4
28
Japan
4
20
Hong Kong
4
20
16
46
6
23
2
8
28
48
35
8
1
24
52
32
Singapore
28
50
36
India
China
28
20
42
15
65
4
4
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
83
Support of mandatory independent
assurance statements
Q29. To what extent
would
ld you
support or
oppose
mandatory
independent
ass rance
assurance
statements
about aspects
of companies’
internal
controls?
Strongly
oppose, 4%
Don’t know,
3%
Strongly
support, 17%
Tend to
oppose, 11%
Neither
support nor
oppose 28%
oppose,
Tend to
support, 37%
Base: all respondents (402)
Source: Ipsos MORI
84
Support of mandatory independent
assurance statements (by country)
% Strongly support
Q29. To what extent
would
ld you
support or
oppose
mandatory
independent
ass rance
assurance
statements
about aspects
of companies’
internal
controls?
% Tend to oppose
13
UK
US
France
Japan
% Don’t know
20
34
34
6
40
40
27
38
6
42
32
24
38
27
6 2
38
28
4
51
12
54
16
11
21
38
20
2
13
21
36
China
Hong Kong
% Strongly oppose
29
6
India
Singapore
% Neither support nor
oppose
39
21
Germany
% Tend to support
8
23
4
8
8
27
4
8
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
85
Support of mandatory independent
assurance statements (by AUM)
% Strongly support
Q29. To what extent
would
ld you
support or
oppose
mandatory
independent
ass rance
assurance
statements
about aspects
of companies’
internal
controls?
% Tend to oppose
Less than
$1bn
$1bn to
$20bn
$20bn +
N/A
24
9
30
44
14
% Neither support
nor oppose
% Strongly oppose
% Don’t know
26
13
29
39
24
% Tend to support
11
27
37
5 3
4 3
13
31
5 2
22 4
Base: AUM: less than $1bn (127), $1bn to $20bn (119), $20bn+ (102), N/A (54)
Source: Ipsos MORI
86
Demographics
g p
Organisation type
Integrated fund/investment manager
Q30. Which of the
f ll i b
following
bestt
describes your
organisation?
(top mentions)
43%
Private asset/portfolio management,
high net worth/ private client
25%
13%
Hedge Fund
Pension Fund
4%
%
Insurance
4%
Investment firm/bank
2%
Brokerage company
1%
Bank
1%
Mutual funds
1%
Other
3%
Base: all respondents (402)
Source: Ipsos MORI
88
Assets under management
% Less than $1bn
Less than $500m
Q31a. What is the
approximate
i t
size of your
employer’s
business by
assets under
management?
% $1bn to $20bn
24%
% $20bn+
$500m to $1bn
7%
% N/A
13%
17%
Over $1bn to $5bn
Over $5bn to $10bn
Over
O
e $
$10bn
0b to $
$20bn
0b
Over $20bn to $50bn
32%
4%
25%
8%
5%
30%
20%
Over $50bn
N/A
13%
Base: all respondents (402)
Source: Ipsos MORI
89
Respondent industry sector
Industry
%
Industry
%
All sectors/not sector specific
Banks
Oil and Gas
A tomobiles and Parts
Automobiles
Electronics and Electrical Equipment
Pharmaceuticals and Biotech
Real Estate
Speciality
p
y and Other Finance
Telecommunications Services
Diversified Industrials
Engineering and Machinery
Equities
H lth
Health
Information Technology Hardware
Insurance
Mining
Other
Steel and Other Metals
Utilities (excluding electricity)
Construction and Building Materials
Consumer
F d and
Food
dD
Drug R
Retailers
t il
52
9
6
5
4
4
4
4
4
3
3
3
3
3
3
3
3
3
3
2
2
2
Global/international markets
Software and Computer Services
Stock/shares/small cap/mid cap
Food Producers
Prod cers and Processors
General Retailers
Media and Entertainment
Aerospace and Defence
Beverages
g
Chemicals
Commodities
Electricity
Energy
F d /t t
Funds/trusts
Household Goods and Textiles
Investment
Life Assurance
Personal Care and Household Products
Support Services
Technology
Software and Computer Services
2
2
2
2
2
2
1
1
1
1
1
1
1
1
1
1
1
1
1
2
Base: all respondents (402)
Source: Ipsos MORI
90
Region specialised in
Asia Pacific
(incl. China, Japan, India)
Q33. Which region
off the
th world
ld
do you follow
or specialise
in?
36%
30%
Western Europe
20%
North America
19%
Global/worldwide
Eastern Europe/Russia/ Former
Soviet states
7%
5%
Central/South America
Middle East
Africa
Follows specific countries
1%
0%
24%
Respondents had option to select multiple responses
Base: all respondents (402)
Source: Ipsos MORI
91
Corporate reporting or governance
Q34. Are you
responsible
ibl
for corporate
reporting or
governance
matters as
the relate to
they
investee
companies on
behalf of your
organisation?
Yes, 25%
No 75%
No,
Base: all respondents (402)
Source: Ipsos MORI
92
Corporate reporting or governance
% Yes
Q34. Are you
responsible
ibl ffor
corporate
reporting or
governance
matters as
the relate to
they
investee
companies on
behalf of your
organisation?
% Refused
% No
UK
28
72
US
27
73
France
8
Germany
92
26
32
Japan
India
Hong Kong
66
20
Singapore
China
74
2
80
32
68
8
92
42
58
Base: UK (75), US(75), France (50), Germany (50), Japan (50), India (25), Singapore (25), China (26), Hong Kong (26)
Source: Ipsos MORI
93
Statistical reliability
ƒ
An overall sample size of around 400 means that if half of the respondents (i
(i.e.
e around 50%)
gave a particular answer, we can be confident (90 times in 100) that the true value, had we
interviewed all members of the population, would lie no more than +/- 4 percentage points from
the sample response
ƒ
The table below shows the reliability at the 90% confidence interval for different sample sizes
applicable to percentages at or near the specific levels. Reliability figures have been rounded to
the nearest half percentage point
Country (Sample size)
10/90%
70/30%
50%
Total sample (402)
2.5
4
4
US, UK (75 interviews)
5.5
8.5
9.5
France, Germany,
F
G
Japan
J
(50
interviews)
7
10 5
10.5
11 5
11.5
China, Hong Kong, India,
Si
Singapore
(25/26 iinterviews)
t i
)
10
15.5
16.5
Source: Ipsos MORI
94
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