The Romanian companies listed on BVB are highly responsive to institutional investors’ questions and concerns, according to 84% of investors who participated to the first perception study conducted by the Romanian Investors Relations Association (ARIR) with institutional investors. They communicate most often with listed companies through dedicated events (76%), but also by email or phone (56%).
The availability of the management of listed companies is 72% at or above the expectations of institutional investors. At the same time, 60% of the answers stated that the transparency and the quality of reporting of the companies listed at BVB correspond to their expectations. Regarding the experience of institutional investors in communicating with companies at the IPO, 28% said it is positive and 28% neutral; investors agree that companies in the process of listing are actively present in roadshows and have well-prepared presentations.
Investors from Romania, United Kingdom, United States, Hungary, Netherlands, Czech Republic, Estonia, Poland, New Zealand and Finland participated in the survey with total assets of EUR 5.7 bn and an exposure to Romania of EUR 689 million. The majority of investors are trading on the Bucharest Stock Exchange (BVB) for more than 3 years and, in 85% of cases would recommend investing in the shares listed on the local capital market to other investors.
“The results of the perception study confirm the priorities that ARIR members have set and provide a clear picture on the communication with listed companies at the time of the setup of the association. We aim for an increased transparency and communication of the listed companies. We plan to redo the study after one year, and extend it to individual investors,” said Daniela Șerban, ARIR President.
Among the strengths of the capital market in Romania as mentioned by the respondents, there are dividend yields (80%), low valuations and growth potential, low volatility – stability, good macro data, improvement of the corporate governance, presence of state owned energy companies and stable base of buy and hold investors.
On the other hand, liquidity and market depth (50%), reduced sectorial diversity – too many defensive companies, low activity of retail investors – low saving rate, low diversity of products and communication – exposure are mentioned as weaknesses.
The first perception study among institutional investors was carried out at the initiative of founding members of the Romanian Investor Relations Association (ARIR) between 5-23 November 2018. The responses were collected online, on a sample of 30 institutional investors with total assets under management of EUR 5.7 bn and an exposure to Romania of EUR 689 M.