Germany Set to Tighten Listing Rules

Financial News, September 10, 2001 | Go to article overview

Germany Set to Tighten Listing Rules


German regulators have welcomed measures in the government's proposed Financial Market Promotion Act, designed to improve investor confidence in the country's equity markets, especially the battered Neuer Markt.

Last week the all-share index of Frankfurt's high-growth market dipped below the psychologically important 1,000 mark for the first time since the month it was launched when it hit 997.25 on Thursday. The index started with a base value of 1,000 as of December 31, 1997. In comparison a year ago the same index stood at 5,669.23.

The German government has proposed new laws that it hopes will help restore faith in listed companies by making them liable for damages if they provide false or misleading ad hoc announcements, or if they do not make announcements about market-sensitive information on a timely basis.

Other changes include the publication of deadlines for lock-up agreements and transactions by insiders, and giving stock exchanges more freedom to set their own rules.

The government plans to introduce the legislation by 2002, if it gets parliamentary approval.

Shearman & Sterling, the law firm, highlighted the need for legislation in its recent Neuer Markt report: Gateway to European Capital Markets - key to growth. Roland Berger Strategy Consultants and Dresdner Kleinwort Wasserstein (DrKW) also contributed to the report.

The government proposal suggests that BAWe, the German securities regulator, gain new powers to fine companies up to E1.5m ($1.3m) if they fail to comply with the rules on ad hoc announcements. For example, companies will only be able to report comparable figures so that investors will be able to see real changes.

Regina NoAner, a spokeswoman at BAWe, welcomes the move. She says: "It strengthens our hand as previously we could fine a company for not making an announcement or making it late, but we had no powers over marketing abuses."

DrKW studied ad hoc disclosures in the Neuer Markt report. The bank found that for the year starting July 13, 2000, the 20 companies with the best price performance on the Neuer Markt publish on average 7.71 ad hoc disclosures per year with a 0.92% degree of error.

In contrast, the 20 companies with the worst price trend released on average 13.21 disclosures with a 2% margin of error. DrKW says: "Many of the poor performers obviously try to curb this downward trend with an expansive information policy."

The bank also examined the quality of all the quarterly reports of companies listed on the Neuer Markt in 2000 and 2001. DrKW says: "We found a very mixed bag with regard to the quality of reporting. Clear and precise details were just as common as incorrect calculations and excessively aggregated figures. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Germany Set to Tighten Listing Rules
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.