Public companies are spending a quarter of a billion and miss the target
According to an IR survey of Swedish listed companies conducted by our agency, companies spend in the order of one quarter of a billion Swedish kronor on the production of annual reports every year, and this is just for the companies listed or quoted on Nasdaq OMX. This represents an average of nearly 50 percent of the annual IR budget.
While the survey shows that when companies rank the main objective with their IR work to achieve a fair market valuation is top priority followed by making the company better known, meet compliance requirements, changing the ownership structure and to facilitate capital acquisition.
Unlike in the Anglo-Saxon countries the annual report is still considered to be the most important financial communications tool for listed companies’ in Sweden. This despite the fact that the available channels to disseminate information has increased significantly only in the last ten years.
– An annual report, lavish or not, does not contribute more than marginally in achieving the targets companies deem most important with their IR activities. We believe that within the existing IR budget it is possible to allocate resources from the production of an annual report to more strategic IR, “said Mikael Zillén, Founder and Partner.
For more information contact:
Mikael Zillén, founder and partner, phone: +46 762 13 00 40