Stimulating change in financial communication

Two interesting business events that might appear separate but are in fact closely related: From BBC News:

Shares in the London Stock Exchange (LSE) have jumped by 30% on Monday following speculation of a bid war. On Friday the LSE rejected a 2.43bn ($4.2bn) bid from the New York-based exchange Nasdaq. This sparked speculation that the New York Stock Exchange (NYSE) and Euronext would table counter-bids. >> Full story. There is a growing trend among publicly-listed companies in the US to exercise greater transparency (that word Enron and study by McKinsey last week which concluded that it was a myth that regular earnings guidance led to lower volatility and higher share valuations - two reasons traditionally cited in favour of such disclosure, the FT said. One connection between these two stories is the likelihood of pressure for change in the UK regulatory environment regarding communication on financial matters by listed companies if an American exchange succeeds in acquiring the London Stock Exchange. That could help loosen up the restrictive and controlled way in which listed UK companies communicate with their financial audiences. A good thing, in other words. Add to Yahoo! My Web Technorati: Neville Hobson is the author of the popular Crayon. Visit Neville Hobson's blog:

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