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What are the benefits of value reporting and its status in Switzerland?

Posted by
Swiss Finance Institute
on
Thursday, January 5, 2017 - 08:00

Disclosure and reporting are important elements in a company’s governance framework as only well-informed investors are able to make sensible decisions. In assessing the extent to which Swiss companies report to their shareholders, it is not sufficient to consider the compulsory disclosure framework alone. Rather, one must use the much broader concept of value reporting—the enhanced reporting of both financial and non-financial information that is relevant for understanding how value is created and distributed in the company.

Our most recent SFI White Paper summarizes the status of value reporting in Switzerland, discusses possible future developments, and provides action points for corporations and policy makers alike.

 

The key messages are:

  • Research indicates the substantial benefits of value reporting. It can both help reduce the cost of capital and enable companies to achieve more efficient resource allocation.
  • Although the data on more than 200 Swiss companies show improvements in value reporting over the past decade, too many companies still see disclosure purely as a matter of compliance, seeking to keep communication to the legal minimum. Swiss companies perform poorly (14 percent with pass grades) when it comes to discussing non-financial aspects in their reports.
  • Corporate social responsibility (CSR) and environmental/social/governance (ESG) risk disclosure will likely become more important going forward and should, therefore, be considered proactively already today.

 

Interested to find out more?

Read the latest SFI White Paper and learn how Swiss companies can improve their value reporting, through which channels enhanced reporting can benefit companies, and whether there is a trend toward the standardization of disclosure.

 

Read other related posts on this topic:
How does the corporate governance cycle of companies work?
How active are the shareholders of Swiss listed companies and what is their role?
What is the role of the board of directors in the Swiss context?
What should managerial compensation look like and what are the trends in executive pay in Switzerland?