Prof. Dr. Henning Zülch (picture) and his team of HHL Leipzig Graduate School of Management have determined in a challenging competition for the best capital market communication in Germany the winner of all 160 companies belonging to the DAX, MDAX, SDAX, and TECDAX indices. It is clear now that the automotive supplier Continental has the best capital market communication of all companies analyzed, and Continental CFO Wolfgang Schäfer is Capital Market Strategist of the Year 2014. This is not entirely undeserved, because he was able to increase the value of Continental in recent years spectacular.
The team led by Prof. Zülch has examined the key instruments of investor relations activities (IR), namely annual and interim reports and IR websites and presentations. For this purpose, the reaction of the capital markets was inspected: share performance, and the opinion of fund managers sought (Deka, DWS, Union). The focus of the analysis is whether the companies give a detailed picture of their strategy, and not just at group level but also at the segmental level. The same applies to the assets, financial position and results, including the risk assessment. Highest importance was placed on the consistency and coordination of the respective report items by the analysts.
Prof. Zülch states, “The competition is based on a robust ranking scheme and evaluates the brokerage of information that are useful for investors in the capital market in making investment decisions. But unfortunately we identified some weaknesses, thus, in corporate practice more concrete action is needed to match the dimensions of the underlying ranking with each other and draw a trustworthy image among investors.”
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