The applicability of ValueReporting TM to Maltese listed companies : the benefits to the companies, the investors and the Malta Stock Exchange.

Abstract

ValueReporting™ is a new approach to corporate reporting, which seeks to help companies realise their full value in the capital markets. It addresses the gaps between the current financial reporting model and the demand by investors and other stakeholders for more information on market dynamics, strategy, and intangible and non-financial drivers of shareholder value. ValueReporting™ provides greater clarity and transparency to investors and other corporate stakeholders and supports better decision making by managers. The scope of this dissertation is to discover whether such a corporate reporting model is applicable to Maltese listed companies. This has been attained through a survey of equity shareholders on whether they feel the need for such reporting, and interviews conducted with representatives from local listed companies and the Malta Stock Exchange. The study has shown that the majority of investors are satisfied with the amount and type of information currently being provided by companies. However certain shortfalls were also pointed out. Listed companies expressed their view that competition is the main deterrent which keeps them from providing more information to their shareholders. The MSE representative explained that listed companies are already required to provide a substantial amount of information, however care should be taken to provide such information in a language and format that are easily understood by investors.In conclusion, the dissertation has provided a number of valid recommendations for the adoption of a modified version of the ValueReporting™ model which would benefit all parties concerned.