VEKTOR – measure of the communication of listed companies with investors

The Romanian Investor Relations Association (ARIR), with the support of the Bucharest Stock Exchange (BVB), will publish VEKTOR starting January 2020 for all listed companies on the Main Market. The indicator will be calculated based on methodology that comprises 15 criteria, in line with international best practices in Investor Relations (IR).

VEKTOR indicator will have values between 0 (low communication) and 10 (excellent communication). It will be displayed for every listed company profile on the BVB website, for the first time in the second part of January 2020. The aggregated data for all companies will be available on the dedicated section of ARIR website.

The indicator is determined based on 15 criteria, including:
– The existance & availability of the Investor relations team;
– Disclosure on management information and remuneration policy;
– Organising financial results conference calls;
– The existence of Investor presentation;
– Dissemination of press releases related to financial results;
– Participation to investors conferences;
– The availability of the financial results in an easy to process format;
– Transcript or replay of the most recent results’ conference calls
– Availability of stock price information;
– Information about analyst coverage;
– Non-financial reporting.

The methodology for calculating the indicator was revised at the beginning of the year, after ARIR took over the project from BVB previously named „The Whitebook on Communication of Listed Companies”. The new identity of VEKTOR was determined following a rebranding process which ARIR carried out in partnership with Inoveo, branding and creation agency, present for 20 years in the market.

The analysis and evaluation of the publicly available information, of the website and investor relations (IR) section will be carried out between December 1-20, 2019 by ARIR and the Project Committee, consisting of 15 people (corporate governance consultants, IR professionals, academia, non-financial reporting consultants). The evaluation process will be reviewed between January 1-15, 2020 by Mazars, one of the largest audit and consultancy companies in the world, present in 89 countries and territories, with 25 years experience on the Romanian market.

The methodology was developed by ARIR members, financial analysts, IR professionals, academia and consultants. It will be revised annually in March and the assessment of the communication of the listed companies with investors will be done annually in December, or anytime at the request of a listed company.


About Romanian Investor Relations Association (ARIR):

ARIR is a non-governmental and non-profit organization that was set-up to provide current and potential issuers a platform for the development of Investor Relations (IR) professionals and contribute to the implementation of best practices in investor communication and corporate governance. It was established in November 2018 and has as members listed companies, companies with potential to become listed companies, fund managers, IR professionals as well as consultants. The founding members are BVB, ALRO, Electromagnetica, Franklin Templeton Management – Bucharest Branch, Hidroelectrica, Nuclearelectrica, Teraplast, Transelectrica, Daniela Șerban, Cosmin Răduță and Tony Romani, while Electrica, OMV Petrom and Antibiotice joined as Associate Members and INNOVA Project Consulting as Affiliate Member.

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