Amec participates in the launch of Papers of IBGC’s Market Communication Committee
On August 3rd, Roberto Reis, vice president of the Association of Capital Market Investors – Amec, was one of the speakers in the Launch of Papers of the Market Communication Committee of the Brazilian Institute of Corporate Governance – IBGC. At the event, Reis had the opportunity to contribute with the discussions about ways to control the information of publicly held companies.
Preventive measures, monitoring and reactions in case of information leakages were some of the topics under discussion. “I addressed the behavior of companies and investors, primarily the issue related to the simultaneous disclosure of information that is not always conducted by the companies,” Amec’s vice president explained.
Reis criticized the domestic market’s custom of making previews of the companies’ results. “Unfortunately, Brazilian investors are used to contacting the companies after the closing of quarterly results to try to put a “thermometer” on the results that will be released,” he states. “This common practice leads some investors to act (buy or sell shares) based on the result that has not been disclosed yet.”
According to Reis, there is a phenomenon in the USA called earnings surprise, in which the prices of even those companies that are closely followed by the market either drop or rise significantly when their results are disclosed, what shows they are really unexpected by the market.
“I addressed the need of getting rid of this practice. Several respectful Brazilian companies have already stopped to do that. It’s a start, but we still have a long way to go,” Amec’s vice president completes.
According to Reis, when the results are released beforehand, the good performance of the share can be affected after their disclosure because of the anticipation of the market – or of part of it – to the event.
