Benefits of reporting

The ultimate challenge for individuals operating in the area of corporate reporting is the ability to demonstrate a direct relationship between greater transparency and improved share price performance. Unfortunately, so many variables - including external influences in the market place, industry-trends, and the start date for any analysis – render this analysis extremely difficult.

Despite the apparent difficulties, we continue to undertake research in order to identify the potential benefits of greater transparency. In the Coloplast Experiment our research suggests that corporate reports are more likely to generate rewards in the capital markets if the reader can visualise a link between strategy and areas such as employees, the environment and corporate performance.