If you can see this message, your browser does not support canvas and needs an update. Sorry. :(
Tuesday, May 23, 2017 
Market Status: CLOSE
About us and Governance Investor Relations Contact
Advanced search

Recommendations for listed companies

In case of any listing, the debut of trading of shares or bonds represents a new stage in the life of a company. Therefore, from the very first day of trading each listed company develops a new product – its own shares or bonds. As with any other product or service offered by a company, the issued shares or bonds will need promotion and the necessary support in order to remain attractive to their potential clients, the investors. This can be achieved through various means of communication that should become an important part of the company’s daily life. As any other day-to-day activity, communication with the market will require a certain allocation of resources.

Each listed company should actively communicate with the market and pay attention to the investor’s and analyst’s opinions on an ongoing basis. The minimum standards of a listed company’s communication policy are the reporting and transparency regulated by the Financial Supervisory Authority and the Bucharest Stock Exchange.

Post-listing requirements and recommendations

Initial promises fulfillment

A public company needs to build investors' trust from the very beginning. Investors want to know that the funds were spent in line with the company’s prospectus. Therefore it is of key importance to show that the funds raised during the public offering were put to use. It is also of great value to emphasise positive results of the investments made (in case of newly-issued shares).

Mandatory reporting obligations

Transparency is a key issue for any public company. Investors need to be updated and informed constantly on all important events in the company's life. In order to meet this requirement, a company should inform the market via so-called current reports whenever a significant event occurs. Companies should also submit financial reports on a quarterly basis (it is recommended to provide them in both Romanian and English).

Financial reporting best practices

Financial results are some of the most significant news to share with the public. Investors appreciate detailed information, such as the key drivers of revenues, operating result, net result or total assets. Best practice suggests that quarterly financial reports should be accompanied by earnings conference calls or meetings dedicated to investors and analysts.

Investor Relations

It is important to have an Investor Relations function, as a single point of contact with the listed company, which should be able to provide knowleadgeable information on request. Investor Relations duties can be also carried out by the CEO/CFO. Investors and analysts value the participation in regular meetings and the ability to be in a constant touch with the company. The company's webpage should also serve the latter goal.

Corporate Governance framework

Listed companies should adhere to a Corporate Governance Code and provide related information in their Annual Report. Corporate Governance Codes include, in most of the cases, provisions regarding the responsabilities of the management, the risk management and the internal control systems, management incentives and remuneration policy, and the responsibilities of the Investor Relations function.