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ARIR Study: Financial reports released by the listed companies are the main source of information for individual investors

– The financial reports published quarterly by the listed companies are the most important source of information for investors (84% of individual investors), the Bucharest Stock Exchange website is daily followed by half of the respondents, according to the results of the perception study carried out by the Romanian Investor Relations Association (ARIR)
– The majority of individual investors decide to invest in a company based on the financial results, the business strategy and the dividend policy
– Brokers’ and analysts’ opinions, media and investors clubs are also important for individual investors
– The individual investors’ perception study regarding the communication and the transparency of the listed companies was carried out by ARIR between 21st of March and 15th of April and included a sample of 104 individual investors, 51% of them invest for over 5 years and 57% have a portfolio of over 50 thousand lei (~10.6 k EUR)

Bucharest, June 11, 2019 –  Individual investors follow quarterly financial reports and website of the companies listed on the Bucharest Stock Exchange (BVB), the two being the main sources of information for the majority of individual investors that participated in the ARIR perception study. Over half of the respondents follow daily BVB website and consider it an important source of information. Investors consult weekly brokers’ and analysts’ opinions and daily written and online media. For the majority of the investors (72%), investors’ clubs and associations are an important source of information.

The perception study among individual investors reveals that the financial reports, the business strategy and the dividends determine the decision to buy or sell shares of a company listed on BVB.

Direct communication with the companies take place most often during conferences attended by company’s management (35%), followed by the participation at the General Shareholders Meetings (24%), via e-mail (22%) or via phone (11%). 26% of investors communicate with the listed companies through brokers and analysts. Over 40% of respondents say they do not communicate with the listed companies.

Daniela Șerban, președinte ARIR

Daniela Șerban, ARIR President: ”The results of the second perception study carried out by ARIR support the need to develop individual investors dedicated strategies, who are proving to be very active and informed. The members of the association have been part of the working group for the revision of the methodology for evaluating the communication of the listed companies with investors, recently released, and they call for increased transparency and the use of new tools for investor relations.

Only 33% of the respondents state that transparency of the listed companies and their communication with individual investors is as expected.  However, 89% of the respondents mention that they would recommend investing on BVB to other investors, 67% are active monthly or quarterly on the stock market, with an average duration of the holdings of over 1 year. 51% of them are investing at BVB for over 5 years and 57% have a portfolio of over 50,000 lei (~10.6 k EUR).

The first perception study among individual investors was carried out by the Romanian Investor Relations Association (ARIR) between 21st of March and 15th of April 2019, in cooperation with Investors Club, Asociația Utilizatorilor Români de Servicii Financiare, Clubul Investitorilor pe Piața de Capital and www.investestelabursa.ro. The responses were collected online, on a sample of 104 individual investors.

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