The Taiwan Stock Exchange (TWSE) will launch the “Corporate Value Enhancement Plan Zone” to assist the international development of issuing companies, guide listed companies to enhance their corporate value, attract more international capital inflows, strengthen their ability to create long-term value, and actively communicate with shareholders and stakeholders. This dedicated area is set up under the “Investment Section” of the Market Observation Post System, which includes corporate financial indicators and corporate value enhancement plans to encourage listed companies to disclose more comprehensive and in-depth financial and business analysis as well as future strategies. In line with the global capital market’s increasing emphasis on corporate governance and long-term value, Taiwan’s capital market will continue to innovate and enhance its international competitiveness in response to market demand.

 

Corporate Value Enhancement Plan Zone: Enhancing Information Transparency

 

Under the rapid changes in the global capital market, investors are increasingly valuing corporate performance in areas such as corporate governance and sustainable development. To guide listed companies to enhance their corporate value, the TWSE has revised the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies” and provided “Template for Corporate Value Enhancement Plan” for listed companies to follow. It has also set up a dedicated area to compile financial indicators of listed companies such as yield, stock price to book value ratio, and price to earnings ratio, and listed companies are encouraged to voluntarily upload their plans for corporate value enhancement, helping investors understand their long-term development and improve information transparency.

 

The highlights of this dedicated area are:

 

1.    Integrating information on the “Corporate Value Enhancement Plan”

The dedicated area provides a platform for disclosing information about listed companies, allowing investors to easily access their “Corporate Value Enhancement Plan”. The plan encourages listed companies to display their analysis of cost of capital and profitability as well as their market evaluation and corporate governance status, and to describe their specific corporate value enhancement measures in capital expenditure, research and development or human resources investments, so that investors may understand the companies’ current status and future plans.

 

2.    Promoting communication with investors

Through public disclosure of their “Corporate Value Enhancement Plan”, listed companies are encouraged to actively communicate to investors relevant information such as through dialogues on company websites, or at shareholders’ meetings or briefings to institutional investors to explain their financial situation, corporate governance structure, and future strategies, enabling the capital market to truthfully reflect their corporate value.

 

3.    Promoting the continuous improvement of corporate governance

The TWSE hopes to promote the internalization of “shareholder value enhancement” and “governance transparency” as the core of corporate culture through this dedicated area. In response to the global market’s emphasis on corporate governance, the TWSE aims to strengthen the competitiveness of Taiwan’s capital market, and further attract the attention of international capital through the voluntary and continuous improvement of corporate governance. In addition, the TWSE will conduct advocacy and explanation at the business promotion meeting for listed companies in October and November to encourage listed companies to continuously enhance their corporate value, building a long-term, stable, and sustainable capital market.