Download High-Level Results

Duke University/CFO Magazine
Business Outlook Survey
Asia
1st Quarter, 2005
Table of Contents
1. Are you more or less optimistic about the Asian economy compared to last quarter?
1
2. Are you more or less optimistic about the financial prospects for your company compared to last quarter?
2
3. Would a revaluation of the Chinese renminbi help or hurt your firm?
3
4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months for:
[Public Companies - Windsorized - Unweighted - Sorted]
4
4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?
[Public Companies - Windsorized – Revenue Weighted - Sorted]
5
4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?
[Public Companies - Windsorized – Employee Weighted - Sorted]
6
5. What are the top four concerns your corporation faces in 2005? (rank #1, #2, #3, #4)
5. What are the top four concerns your corporation faces in 2005? OTHER SPECIFIED
6. Negative impact of terrorism.
6. Negative impact of terrorism.
7
8
9
10
7. The Federal Funds rate is currently 2.5%. What do you consider to be the "neutral" level of interest rates? (Neutral interest
rates strike a balance between inflation and economic growth).
11
8a. Sarbanes-Oxley is now being phased in for non-US firms that are listed in the US. Would the cost of
implementing Sarbox make you consider issuing new listings in markets other than the US?
8b. In your opinion, what are the top two benefits of compliance with Sarbanes-Oxley? (rank #1 and #2)
8b. In your opinion, what are the top two benefits of compliance with Sarbanes-Oxley? OTHER SPECIFIED
8c. What are the top two drawbacks of compliance with Sarbanes-Oxley? (rank #1 and #2)
8c. What are the top two drawbacks of compliance with Sarbanes-Oxley? OTHER SPECIFIED
12
13
14
15
16
Industry
Industry (Other specified)
Sales Revenue
Weighted Sales Revenue (Millions)
Number of Employees
Weighted Number of Employees
Headquarters
Ownership
Foreign Sales
17
18
19
20
21
22
23
24
25
1
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
1. Are you more or less optimistic about the Asian economy compared to last quarter?
3=More optimistic
2=No change
1=Less optimistic
Total
Mean = 2.58
SD = .69
Missing Cases = 0
Response Percent = 100.0 %
Number
128
34
21
183
Percent
69.9 %
18.6 %
11.5 %
100.0 %
95% CI
± 7.0 %
± 6.1 %
± 5.2 %
2
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
2. Are you more or less optimistic about the financial prospects for your company compared to last
quarter?
3=More optimistic
2=No change
1=Less optimistic
Total
Mean = 2.49
SD = .74
Missing Cases = 0
Response Percent = 100.0 %
Number
116
40
27
183
Percent
63.4 %
21.9 %
14.8 %
100.0 %
95% CI
± 7.3 %
± 6.5 %
± 5.7 %
3
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
3. Would a revaluation of the Chinese renminbi help or hurt your firm?
1=Hurt a lot
2=Hurt moderately
3=Hurt a little
4=No effect
5=Help a little
6=Help moderately
7=Help a lot
Total
Mean = 3.96
SD = 1.28
Missing Cases = 0
Response Percent = 100.0 %
Number
8
16
26
86
23
20
4
183
Percent
4.4 %
8.7 %
14.2 %
47.0 %
12.6 %
10.9 %
2.2 %
100.0 %
95% CI
± 3.9 %
± 4.7 %
± 5.6 %
± 7.6 %
± 5.4 %
± 5.1 %
± 3.7 %
4
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE
during the next 12 months for: [Public Companies - Windsorized - Unweighted - Sorted]
(N=75)
Mean & SD
Wages/Salaries
0.92
0.32
Positive
1
60
93.8%
Zero
0
3
4.7%
Negative
-1
1
1.6%
Total
64
100.0%
Revenues
0.87
0.47
50
92.6%
1
1.9%
3
5.6%
54
100.0%
Capital spending
0.79
0.50
40
83.3%
6
12.5%
2
4.2%
48
100.0%
Earnings
0.79
0.58
41
87.2%
2
4.3%
4
8.5%
47
100.0%
Productivity (output per hour worked)
0.76
0.48
33
78.6%
8
19.0%
1
2.4%
42
100.0%
Technology spending
0.76
0.48
38
77.6%
10
20.4%
1
2.0%
49
100.0%
Health care costs
0.74
0.50
27
77.1%
7
20.0%
1
2.9%
35
100.0%
Advertising/Marketing Spending
0.62
0.60
32
68.1%
12
25.5%
3
6.4%
47
100.0%
Number of domestic employees
0.58
0.70
34
70.8%
8
16.7%
6
12.5%
48
100.0%
Dividends
0.47
0.67
17
56.7%
10
33.3%
3
10.0%
30
100.0%
Prices of your products
0.45
0.81
32
65.3%
7
14.3%
10
20.4%
49
100.0%
M&A activity
0.40
0.57
11
44.0%
13
52.0%
1
4.0%
25
100.0%
Number of foreign/off-shore outsourced
employees
0.34
0.63
15
42.9%
17
48.6%
3
8.6%
35
100.0%
5
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE
during the next 12 months? [Public Companies - Windsorized - Revenue Weighted - Sorted]
Mean
SD
95% CI
Median
Minimum Maximum
Earnings
19.18
14.84 18.66 - 19.71
20
-50
100
Revenues
13.59
10.64 13.22 - 13.97
10
-15
91.16
Capital spending
11.02
11.46 10.56 - 11.48
10
-35.80
69.58
Technology spending
9.78
14.95
9.23 - 10.32
5
-5
68.37
Dividends
4.43
20.15
3.45 - 5.41
5
-27.20
38.97
Advertising/Marketing Spending
3.43
5.37
3.22 - 3.64
0
-10
40.78
Prices of your products
2.79
6.40
2.56 - 3.03
4
-12.30
19.40
-0.26
10.44
-0.82 - 0.31
0
-30
52.22
M&A activity
6
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE
during the next 12 months? [Public Companies - Windsorized - Employee Weighted - Sorted]
Mean
SD
95% CI
Median
Minimum Maximum
Wages/Salaries
6.63
8.70 6.35 - 6.91
4
-19.70
35.14
Health care costs
4.17
4.11 4.00 - 4.34
3
-17.10
25
Number of foreign/off-shore outsourced employees
3.88
5.04 3.68 - 4.09
3
-1
35.71
Number of domestic employees
3.58
8.42 3.25 - 3.91
2
-50
79.82
Productivity (output per hour worked)
2.90
3.77 2.76 - 3.04
2
-5
25
7
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
5. What are the top four concerns your corporation faces in 2005? (rank #1, #2, #3, #4)
(N=183)
High fuel prices
Mean & SD
1.92
0.97
1st
28
42.4%
2nd
21
31.8%
3rd
11
16.7%
4th
6
9.1%
Total
66
100.0%
High non-fuel commodity
prices
2.09
0.98
11
32.4%
13
38.2%
6
17.6%
4
11.8%
34
100.0%
Availability/cost of capital
2.15
1.10
21
40.4%
9
17.3%
15
28.8%
7
13.5%
52
100.0%
Competition
2.31
1.09
37
30.6%
31
25.6%
31
25.6%
22
18.2%
121
100.0%
World economic stability
2.35
1.19
28
35.9%
13
16.7%
19
24.4%
18
23.1%
78
100.0%
Other
2.38
1.33
5
38.5%
3
23.1%
0
0.0%
5
38.5%
13
100.0%
Reduced pricing power
2.41
1.03
14
21.2%
24
36.4%
15
22.7%
13
19.7%
66
100.0%
U.S. dollar weakness
2.48
1.08
10
20.8%
17
35.4%
9
18.8%
12
25.0%
48
100.0%
Increased interest rates
2.59
1.01
8
17.4%
13
28.3%
15
32.6%
10
21.7%
46
100.0%
Political risk
2.63
1.12
11
19.3%
17
29.8%
11
19.3%
18
31.6%
57
100.0%
Distribution problems
2.67
0.91
2
5.6%
17
47.2%
8
22.2%
9
25.0%
36
100.0%
Increased regulation
2.69
1.07
8
17.8%
11
24.4%
13
28.9%
13
28.9%
45
100.0%
Salaries and wages
2.71
1.09
13
20.0%
12
18.5%
21
32.3%
19
29.2%
65
100.0%
Inflation
2.76
1.05
7
14.0%
14
28.0%
13
26.0%
16
32.0%
50
100.0%
U.S. budget deficit
2.88
1.05
1
12.5%
2
25.0%
2
25.0%
3
37.5%
8
100.0%
U.S. trade deficit
3.11
0.87
0
0.0%
3
33.3%
2
22.2%
4
44.4%
9
100.0%
Health care costs
3.36
0.77
0
0.0%
2
18.2%
3
27.3%
6
54.5%
11
100.0%
8
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
5. What are the top four concerns your corporation faces in 2005? OTHER SPECIFIED
additional competent human resources
Availability of Raw Material
cOMPETITION
Decreasing demand for product
lost business
MNC Competition from Foreign
Piracy
Production Issues
Productivity
Regional economic growth
Statutory levies
Technology capability
Technology changes40
unstable social factor eg Terrorist
Weak Purchasing Power
9
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
6. Negative impact of terrorism.
Mean
SD
95% CI
Median
Minimum Maximum
Total
On a scale of 0 to 100, how do you rank the
negative impact that the threat of terrorism
is having on your business? (0 means no
impact, 100 means maximum negative
impact from threat of terrorism.)
28.92
28.08 24.86 - 32.99
20
0
100
183
What number on this scale would indicate
that the threat of terrorism is affecting your
bottom line? (If your answer in 6a is greater
than this number, it means that the threat of
terrorism is affecting your bottom line.)
26.07
27.51 22.03 - 30.11
15
0
100
178
0
-70
75
178
Negative impact minus cut-off negative
impact.
3.16
16.10
0.79 - 5.53
10
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
6. Negative impact of terrorism.
Cut-off negative impact
Threat of terrorism is significantly affecting your
bottom line.
Negative impact and cut-off negative impact are equal
Threat of terrorism is not significantly affecting your
bottom line.
Total
Missing Cases = 5
Response Percent = 97.3 %
Number
Percent
90% CI
64
89
36.0 %
50.0 %
± 6.2 %
± 6.4 %
25
178
14.0 %
100.0 %
± 4.6 %
11
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
7. The Federal Funds rate is currently 2.5%. What do you consider to be the "neutral" level of
interest rates? (Neutral interest rates strike a balance between inflation and economic growth).
Less than 1.0%
1.0%
1.25%
1.5%
1.75%
2.0%
2.25%
2.5%
2.75%
3.0%
3.25%
3.5%
3.75%
4.0%
Greater than 4.0%
Total
Mean = 2.59
SD = .83
Missing Cases = 10
Response Percent = 94.5 %
Number
3
6
4
10
7
27
10
20
8
42
6
13
3
11
3
173
Percent
1.7 %
3.5 %
2.3 %
5.8 %
4.0 %
15.6 %
5.8 %
11.6 %
4.6 %
24.3 %
3.5 %
7.5 %
1.7 %
6.4 %
1.7 %
100.0 %
95% CI
± 4.3 %
± 3.7 %
± 3.7 %
± 4.1 %
± 3.8 %
± 5.7 %
± 4.1 %
± 5.1 %
± 3.9 %
± 6.6 %
± 3.7 %
± 4.4 %
± 4.3 %
± 4.2 %
± 4.3 %
12
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
8a. Sarbanes-Oxley is now being phased in for non-US firms that are listed in the US. Would the
cost of implementing Sarbox make you consider issuing new listings in markets other than the US?
1=Yes
2=Maybe
3=No
Total
Mean = 2.09
SD = .78
Missing Cases = 13
Response Percent = 92.9 %
Number
45
64
61
170
Percent
26.5 %
37.6 %
35.9 %
100.0 %
95% CI
± 6.7 %
± 7.3 %
± 7.3 %
13
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
8b. In your opinion, what are the top two benefits of compliance with Sarbanes-Oxley? (rank #1
and #2)
(N=183)
Better corporate governance
Mean & SD
1.24
0.43
1st
106
76.3%
2nd
33
23.7%
Total
139
100.0%
Lower cost of capital
1.35
0.48
11
64.7%
6
35.3%
17
100.0%
Improved company reputation
1.69
0.46
28
31.5%
61
68.5%
89
100.0%
Set an example for other companies in Asia to
follow
1.70
0.46
6
30.0%
14
70.0%
20
100.0%
Other
1.71
0.45
2
28.6%
5
71.4%
7
100.0%
Improved ability to attract investors
1.72
0.45
20
27.8%
52
72.2%
72
100.0%
14
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
8b. In your opinion, what are the top two benefits of compliance with Sarbanes-Oxley? OTHER
SPECIFIED
better control
Deterrent to internal malpractices
Improve documentation of processes
no benifits
none
Reassess operational efficiencies
reduced non-value adding processes
15
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
8c. What are the top two drawbacks of compliance with Sarbanes-Oxley? (rank #1 and #2)
(N=183)
Cost
Mean & SD
1.15
0.36
1st
103
85.1%
2nd
18
14.9%
Total
121
100.0%
Accountability of senior executives
1.55
0.50
14
45.2%
17
54.8%
31
100.0%
Changes to my company’s accounting
processes
1.66
0.47
12
34.3%
23
65.7%
35
100.0%
Less flexible accounting
1.71
0.45
10
28.6%
25
71.4%
35
100.0%
Increased complexity
1.72
0.45
33
28.4%
83
71.6%
116
100.0%
Other
1.83
0.37
1
16.7%
5
83.3%
6
100.0%
16
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
8c. What are the top two drawbacks of compliance with Sarbanes-Oxley? OTHER SPECIFIED
a ton of paperworks and documentation
Burden on limited human resources
Increased bureacracy
less efficiency in cases
slow down of decision process
time taken out of present staff
17
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
Industry
Manufacturing
Other
Retail/Wholesale
Service/Consulting
Banking/Finance/Insurance
Transportation/Energy
Healthcare/Pharmaceutical
Communications/Media
Mining/Construction
Tech [Software/Biotech]
Total
Missing Cases = 7
Response Percent = 96.2 %
Number
58
23
22
20
14
10
9
8
6
6
176
Percent
33.0 %
13.1 %
12.5 %
11.4 %
8.0 %
5.7 %
5.1 %
4.5 %
3.4 %
3.4 %
100.0 %
95% CI
± 7.2 %
± 5.4 %
± 5.3 %
± 5.1 %
± 4.5 %
± 4.1 %
± 4.0 %
± 3.9 %
± 3.7 %
± 3.7 %
18
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
Industry (Other specified)
BPO
Consumer Goods (beverages)
Education
Electric/Electronic
Engineering Services
hospitality
hotel
hotel
IT
MICE
mixed
power generation
PROPERTY
public
Restaurants/Franchisor
securuties
System Integrator
Telecom
Telecommunication
Trading & Distribution
trading
19
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
Sales Revenue
Less than $25 million
$25-$99 million
$100-$499 million
$500-$999 million
$1-$4.9 billion
$5-$9.9 billion
More than $10 billion
Total
Missing Cases = 1
Response Percent = 99.5 %
Number
54
47
36
12
17
5
11
182
Percent
29.7 %
25.8 %
19.8 %
6.6 %
9.3 %
2.7 %
6.0 %
100.0 %
95% CI
± 7.1 %
± 6.8 %
± 6.3 %
± 4.3 %
± 4.8 %
± 3.6 %
± 4.2 %
20
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
Weighted Sales Revenue (Millions)
Minimum = 25
Maximum = 7500
Mean = 658.27
Median = 62
Variance (Unbiased) = 2178570.74
Standard Deviation (Unbiased) = 1476.00
Standard Error Of The Mean = 112.87
95 Percent Confidence Interval Around The Mean = 437.04 - 879.50
99 Percent Confidence Interval Around The Mean = 367.62 - 948.92
Skewness = 3.29
Kolmogorov-Smirnov Statistic For Normality = 5.22
Quartiles
1 = 25
2 = 62
3 = 300
Valid Cases = 171
Missing Cases = 12
Response Percent = 93.4%
21
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
Number of Employees
Fewer than 100
100-499
500-999
1,000-2,499
2,500-4,999
5,000-9,999
Over 10,000
Total
Missing Cases = 20
Response Percent = 89.1 %
Number
37
52
17
15
17
9
16
163
Percent
22.7 %
31.9 %
10.4 %
9.2 %
10.4 %
5.5 %
9.8 %
100.0 %
95% CI
± 6.3 %
± 7.0 %
± 4.8 %
± 4.6 %
± 4.8 %
± 4.0 %
± 4.7 %
22
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
Weighted Number of Employees
Minimum = 100
Maximum = 12000
Mean = 2340.80
Median = 300
Variance (Unbiased) = 13683525.90
Standard Deviation (Unbiased) = 3699.13
Standard Error Of The Mean = 289.74
95 Percent Confidence Interval Around The Mean = 1772.91 - 2908.68
99 Percent Confidence Interval Around The Mean = 1594.72 - 3086.87
Skewness = 1.81
Kolmogorov-Smirnov Statistic For Normality = 4.07
Quartiles
1 = 300
2 = 300
3 = 3750
Valid Cases = 163
Missing Cases = 20
Response Percent = 89.1%
23
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
Headquarters
Asia
North America
Europe
Central/South America
Total
Missing Cases = 2
Response Percent = 98.9 %
Number
124
34
20
3
181
Percent
68.5 %
18.8 %
11.0 %
1.7 %
100.0 %
95% CI
± 7.1 %
± 6.1 %
± 5.1 %
± 4.3 %
24
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
Ownership
Private
Public
Government
Nonprofit
Total
Missing Cases = 13
Response Percent = 92.9 %
Number
95
69
4
2
170
Percent
55.9 %
40.6 %
2.4 %
1.2 %
100.0 %
95% CI
± 7.6 %
± 7.4 %
± 3.7 %
25
Duke University/CFO Magazine Business Outlook Survey - Asia - 1st Quarter, 2005
Foreign Sales
0%
1-24%
25-50%
Over 50%
Total
Missing Cases = 3
Response Percent = 98.4 %
Number
45
47
25
63
180
Percent
25.0 %
26.1 %
13.9 %
35.0 %
100.0 %
95% CI
± 6.7 %
± 6.8 %
± 5.5 %
± 7.3 %