Rule dents small caps' market values: study
University of Münster researchers find small caps that are exempted did 20.5% better in returns over 2-year period
Singapore
MANDATORY quarterly reporting could cost Singapore-listed small-caps an average of S$9.0 million in "lost" market value that they might have had otherwise, academics have found. The controversial rule also does not actually improve small-caps' liquidity and overall imposes a net burden on these firms, they said in a paper published last week.
The study also found that quarterly reporting did not help reduce information asymmetry and that quarterly reporting was not a means to "complement or substitute existing corporate governance mechanisms to improve liquidity", they added.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Porsche posts Q1 profit drop on ramp-up costs
IBM plots US$730 million expansion of Canadian semiconductor site
Seatrium unit to fully redeem S$500 million worth of floating-rate bonds early
Yeo Guat Kwang, John Chen retiring from corporate boards
US: Wall St opens higher
Air China orders homegrown C919s in challenge to jet duopoly