Financial reports released by the listed companies are the main source of information for individual investors, study shows
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 percent), 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 percent), followed by the participation at the General Shareholders Meetings (24 percent), via e-mail (22 percent) or via phone (11 percent). 26 percent of investors communicate with the listed companies through brokers and analysts. Over 40 percent of respondents say they do not communicate with the listed companies.
Only 33 percent of the respondents state that transparency of the listed companies and their communication with individual investors is as expected. However, 89 percent of the respondents mention that they would recommend investing on BVB to other investors, 67 percent are active monthly or quarterly on the stock market, with an average duration of the holdings of over one year. 51 percent of them are investing at BVB for over five years and 57 percent have a portfolio of over 50,000 lei (~10.6 k EUR).