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Research focuses on liquidity, volatility and transparency analysis of GCC companies
The National Investor (TNI), one of the region's merchant banks, and Hawkamah, The Institute for Corporate Governance have published their joint research entitled Back to BASICs, a liquidity, volatility and transparency analysis of GCC-listed companies.
- Staff Report
- Published: 18:19 September 1, 2008
Dubai: The National Investor (TNI), one of the region's merchant banks, and Hawkamah, The Institute for Corporate Governance have published their joint research entitled Back to BASICs, a liquidity, volatility and transparency analysis of GCC-listed companies.
The report, which has been in preparation for a year unveils an analysis of GCC-listed companies according to 43 parameters, broadly covering three main areas: trading history, corporate communications and disclosure.
The investigation, which examined 581 companies across 24,983 pieces of data, should be of interest to investors, corporations and regulators. It should be particularly useful for outside observers of the GCC stock markets who are less familiar with the region.
The BASIC scoring is aimed at providing investors with a layer of analysis and understanding, which compliments traditional fundamental research and valuation.
Corporations may also benefit from the BASIC insight into corporate governance structures and use the findings as a benchmarking tool.
Regulators will be able to compare the state of liquidity, volatility and transparency in their market against other markets and to identify areas for development and cooperation.
The report recommends that companies should monitor their score and seek improvement. It is suggested that this is simply a matter of improving the quantity and quality of information they disclose to the public.
It also makes the point that if stock market regulations were harmonized across the GCC, the same might be true of company behaviour.
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