THIS WEEK’S TOPIC: Will the move to scrap quarterly reporting lead to a decrease in corporate transparency?
As the World Economic Forum recently concluded in Davos, I am reminded of a quote by founder and executive chairman Klaus Schwab who said, ”I am convinced of one thing – that in the future, talent more than capital, will represent the critical factor of production.”
This is a brilliant statement because what counts at the end of the day is a person’s character and competence. No manner of reporting standards will help if the management is bent on secrecy instead of transparency. To that end, investors wouldn’t be investing in companies when they don’t trust the management in the first place.
The new risk-based approach also signals that the local bourse is moving more in line with its global peers, thus making it more competitive in attracting firms looking to raise capital. The balancing point for worried market participants is assuaged by the Singapore Exchange’s move to release a list of around 100 companies which are still required to report every quarter.
To view my thoughts on Business Times, visit this link: https://www.linkedin.com/pulse/less-sometimes-more-mario-singh/
