Private companies that risk the move onto the stock exchange must spend a lot of time planning and executing the IPO before their shares are listed. It is necessary to comply with legal and regulatory requirements.
In addition to strategic and economic topics, it should also be established how future financial reporting will look, in particular with regard to the form and content of publications.
Different forms of publication of financial reports: Which one suits my company?
Companies listed in the Prime Standard – that is, the segment with the highest requirements – can decide whether to publish a relatively short quarterly statement for the first and third quarters of their fiscal years or a comprehensive, detailed quarterly financial report akin to semi-annual reporting.
As a result, many companies that are new to the stock exchange are wondering which of the two publication forms best suits them.
Our analysis “Financial reports by IPO: how and when?” provides an overview of what forms of financial reporting exist and what deadlines must be met.
Analysis of DAX 40-Groups Financial Reporting
We have empirically evaluated the handling of the two forms of publication, which we believe are important in terms of form, depth and publication timelines. The sample is based on the DAX 40 companies’ Q1 2022 reports and statements for the question “Quarterly Report or Quarterly Statement?”
Majority of DAX 40 Groups Release Brief Quarterly Statements
The analysis shows that 75 percent of DAX 40 companies publish short quarterly statements. Only 25 percent publish quarterly financial reports. Issuers benefit from a significantly lower administrative workload with quarterly statements.
Newcomers to the German Corporate Governance Code (DCGK, Deutscher Corporate Governance Kodex) hardly meet deadlines
Another finding: Only a minority of companies that are new to the stock exchange meet DCGK deadlines in the publication of the first interim report. Read the reasons why here.