The Netherlands Authority for the Financial Markets (AFM) wants listed companies to be clearer about the consequences of the corona crisis for their company, the regulator reports in a study published Tuesday.
According to the AFM, almost all of the companies surveyed report the effects of the corona crisis in their half-yearly financial reporting, but the quality of that explanation differs greatly.
The financial watchdog examined a total of 26 semi-annual reports from listed companies affected by the corona crisis.
About a quarter give a good explanation on all points, about half give a good explanation on some points and a small group of companies hardly explain the effects of the corona crisis.
That is a bad thing, writes the AFM, because it is important for investors that companies are clear about those securities. Investors must be able to know not only what the corona crisis means for a company financially, but also what the employee perspective is and what the consequences are for a company's earnings model. In addition, companies must tell investors what measures they are taking to limit the damage, according to the AFM.