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By ASX Classification Index and ASX Codes

Resources

ASX Classification Index ASX Code

APPENDIX 1: Services D1 D2 D3 D6 Manufacturing Industry Financial Services D5

APPENDIX 2

Firms that issued CFRs: Listed by Industry Category

Financial Services Resources

Australia and New Zealand Banking Group Ltd Alintagas Limited

Bank of Western Australia Limited Australian Gas Light Co.

Bendigo Bank Limited Australian Pipeline Trust

Commonwealth Bank of Australia BHP Billiton Limited

Macquarie Bank Limited Caltex Australia Limited

National Australia Bank Consolidated Minerals

St. George Bank Limited Delta Gold Limited

Suncorp-Metway Limited GRD NI

Westpac Banking Corporation Iluka Resources

AMP Limited Horizon Energy Invest.

AXA Asia Pacific Macquarie Infrastructure

NRMA Insurance Group Newscrest Mining Limited

QBE Insurance Group Ltd Origin Energy Limited

Australian Stock Exchange Ranger Minerals Limited

Computershare Limited Renewable Energy Corp.

Centro Properties Group Rio Tinto Limited

General Property Trust United Energy Limited

GPT Split Trust

Homemaker Retail Group

ING Office Fund Retail

Investa Property Group

Mirvac Group Billabong International

Prime Retail Group Coles Myer Limited

Thakral Holdings Ltd David Jones Limited

Westfield America Trust Gowing Bros. Limited

Westfield Trust Woolworths Limited

Manufacturing Construction

Amcor Limited Abigroup

Austral Limited Ariadne Australia Ltd

Foster's Group Limited Boral Limited

Futuris Corporation Limited Clough Limited

King Island Company Limited Forrester Kurts Properties

National Foods Limited Henry Walker Eltin Group

OneSteel Limited Leighton Holdings Ltd

Orica Limited Lend Lease Corporation

Pacific Dunlop Limited Westfield Holdings

Peter Lehmann Wines Limited

Southcorp Limited

Australian Pharmaceutical Industries Limited Other

GroPep Limited

Institue of Drug Technology Australia Limited Alesco Corp. Ltd

Mayne Nickless Limited Grain Corp Ltd

Services Services (cont)

Burswood Limited Tabcorp Holdings Ltd

ERG Group Telstra Corp. Ltd

John Fairfax Holdings Ten Network Holdings

News Corporation Ltd Toll Holdings Limited

Publishing& Broadcasting Uecomm Limited

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Descriptive Statistics for Split Data Set 117.85 1.93 9230.00 485.62 1169.96 5.49 8.25 -432.80 213.80 5.60 58.35 -4.36 7.80 -637.20 295.60 -2.74 91.16 -4.83 29.94 .33 77.18 34.64 19.76 .46 88 1114.90 51.20 74522.60 6002.21 13134.19 3.68 9.25 -19.40 57.40 11.05 10.86 1.03 6.65 -28.20 90.00 8.65 13.00 3.12 40.55 2.80 85.26 42.18 17.88 .19 88 Market Capitalisation $m Return on Equity Return on Assets Shareholder Dispersion Valid N Market Capitalisation $m Return on Equity Return on Assets Shareholder Dispersion Valid N

Split Data Set No CFR issued

CFR Issued

Statistic Statistic Statistic Statistic Statistic Statistic

Median Minimum Maximum Mean Std. Dev. Skewness

Table 1: Characteristics of Sample Firms

Panel A:

Panel B:

Industry n % No CFR Issued CFR Issued

Resources 33 18.8 16 (18.2%) 17 (19.3%) Manufacturing 38 21.6 23 (26.1%) 15 (17.0%) Construction 11 6.3 2 (2.3%) 9 (10.2%) Retail 9 5.1 4 (4.5%) 5 (5.7%) Financial Services 39 22.2 13 (14.8%) 26 (29.5%) Services 25 14.2 11 (12.5%) 14 (15.9%) Other 21 11.9 19 (21.6%) 2 (2.3%) Total 176 100.0 88 (50%) 88 (50%) χ2 (6, n=176) = 24.735i p < .01 ___________________________________________________________________________________

Auditors Sample No CFR Issued CFR Issued

n % n % n % Non Big-5 21 11.9 16 18.2 5 5.7 Big 5 155 88.1 72 81.8 83 93.3 χ2 (1, n=176) = 6.543ii i

2 cells (14.3% have expected count less than 5. The minimum expected count is 4.50. ii

0 cells (.0%) have expected count less than 5. The minimum expected count is 10.50.

Table 2: t-Test and Mann-Whitney U Results between Non-CFR and CFR firms on Corporate Characteristics

Non-CFR CFR

Firms Firms

(n=88) mean (n=88) mean t p(1-tailed) Z p(1-tailed) Size (LogMcap) 5.10 (1.32) 7.14 (1.86) 8.42 0.000** 7.18 0.000** Profitability (ROE) 5.6% (58.4%) 11.1% (10.9%) 0.86 0.196 1.25 0.107 Profitability (ROA) -2.7% (91.2%) 8.6% (13.0%) 1.16 0.125 0.66 0.255 Shareholder Disp. 34.6% (19.8%) 42.2% (17.9%) 2.66 0.005** 2.79 0.003** Note:Figures in parentheses are standard deviations.

*p < .05 **p < .01

Industry * CFR issued or not 24.735a 6 .000 176 Pearson Chi-Square N of Valid Cases Value df Asymp. Sig. (2-sided)

2 cells (14.3%) have expected count less than 5. The minimum expected count is 4.50.

a.

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