PLANS TO IMPROVE corporate reporting have failed to convince those on the receiving end, according to a poll by Black Sun.
One hundred PLC representatives were questioned over government plans to boost the quality and value of corporate reports, yet 56% said the project will not improve engagement with shareholders and 46% said it will increase the cost of reporting.
Over 80% of respondents doubted the value of the reports as an information tool for investors, with 40% saying that the analyst presentation is most valuable.
Despite this, there have been some improvements: governance and transparency of risks has climbed, with more than 90% reporting on risks that are addressed on a day-to-day basis.
Black Sun director of research Sallie Pilot called on companies to focus on the quality of corporate report contents, saying that “the format and delivery channel is secondary”.
She acknowledged trepidation among corporates over impact of the changes though highlighted: “Good reporting is more than ever a sign of a well-managed company and an opportunity for a business to tell its story and engage with its stakeholders.”
Keynote speaker Charles Tilley, chief executive officer of CIMA, also insisted on its importance but warned: “No new model for corporate reporting is going to emerge overnight.”
A new government framework on corporate reporting is expected soon and it is likely to contain measures to boost transparency and value for investors.
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