Compliance with the corporate governance requirements is important because it increases company value, but investors can accept compliance variations if company representatives provide well-grounded explanations, president of the Bucharest Stock Exchange (BVB) Lucian Anghel on Tuesday told an event devoted to enhancing investor confidence in listed companies.
“We strongly believe that corporate governance helps increase the company’s value so that it is acknowledged by the market. Available statistics on the FTSE 350 index which includes the largest 350 companies listed in London shows that only 62 percent of these companies meet all 54 requirements of the UK Corporate Governance Code. This is not bad, but one should see this similarly to road repair: you must work non-stop and it’s still not enough. When you say you’re done, you must start all over again. Ideally, one should try to get as close as possible to complying with these requirements, but as we see in a market like London, it’s not absolutely unacceptable that 38 percent of the largest listed companies do not fully meet the requirements of the Corporate Governance Code,” said Anghel.
He argued that if a company does not meet one or several requirements of the Code it must provide very well grounded explanations so that investors understand the reason why the respective requirements cannot be implemented, when this will happen – with a deadline also specified to increase investor confidence.
According to him, there are many companies that will be awarded as an example of successful business in order to stimulate others to also seek compliance with the Code requirements.
The BVB Corporate Governance Code was officially released on September 22, 2015. The document contains a set of principles and recommendations for issuers admitted to trading on the regulated market in order to render Romania’s capital market internationally attractive, based on best practices, transparency and trust.
The Bucharest Stock Exchange organized on Tuesday the second edition of the conference for companies – Strategies for maximizing company value and increasing investor confidence, an event dedicated to issuers on the Main Market, the AeRO market, non-listed companies, analysts, institutional investors and chartered consultants.
BVB to launch portal for investors, with company information backed up by four sources
Bucharest Stock Exchange (BVB) is preparing to launch a portal for investors that gathers all the information regarding/about a company that an investor might need, all the mandatory briefings, other data from the company, press news about the respective company and a module dedicated to analysts’ reports, declared Daniela Serban, director with BVB, in charge with PR and investors’ relations.
“This is a new portal, named InvestingRomania.com, that we are about to finalize. We have thought that such a portal is important because investors want to connect faster with listed companies, to monitor their portfolio and to have access to a set of information as complete as possible when they invest. On this portal, we intend to put together four sources of information about the companies that are listed: mandatory reports, that already arrive at BVB, briefings from the listed companies, press news, but also analysts’ reports”, the BVB representative explained.
She also added that the novelty of this portal consists of the amount of information about the companies’ activity, presentations, product launches. Another addition refers to the analysts’ reports.
“We strongly believe in the analysts’ module, as we are interested in finding out their opinion on the listed companies, their analyses but also their estimates on financial results. On the developed markets, when a company publishes its quarterly results, everybody measures them against the analysts’ expectations. We intend to extend this practice in our country as well,” Daniela Serban further outlined.
To be included on this portal, a company needs to be referenced by two analysts, must use the Issuers Reporting Information System (IRIS), to report in English and to have a good corporate governance. In its first phase, the portal will contain information about 15 companies, but the number will increase as more companies will meet the necessary requirements.