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
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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.
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