- More than 70% of investors are looking for significantly more disclosure
- Changes to operations and results in the current period and longer term were of most interest
- Investors want information on changes to demand and the impact on liquidity
Our recent survey of more than 1500 retail investors in Australia and New Zealand revealed they want significantly more information from companies on the impact of COVID-19.
Here’s what they told us they wanted to read in companies’ next financial reports:
- More than 70% expect ‘a great deal’ or ‘quite a bit’ of additional disclosure.
- Even investors with smaller investments and shares in private companies expect more disclosure.
- The top two areas of importance to investors in both Australia and New Zealand are the impact of COVID-19 on current operations and results, and the expected impact on near-future and longer-term operations and results.
- In New Zealand, investors are also interested in the impact on liquidity and outlook; changes to demand for products and services; the impact of travel restrictions; and the impact on employees, with more than 40% of respondents ranking these as important.
- In Australia, investors are also interested changes to demand; impact on liquidity and outlook; impact on supply chains and distribution models; and the impact on operations in other countries, with more than 40% of respondents ranking these as important.
Investors are looking for clear and detailed disclosures from companies to help them make their decisions as they navigate the impacts of COVID-19 and as economies begin the process of recovery.
CAs have a key role to play as preparers, advisers to preparers, and auditors in helping ensure that investors’ needs are met and that confidence in our capital markets remains strong.
We will release the full survey results in the coming weeks. In the meantime, you can download the summary graphs, which show more on what investors are looking for in the coming reporting season.