Technology / Reader: Financial data is worse off than a decade ago

Reader: Financial data is worse off than a decade ago

With the rise of smartphones and social media, much has changed since the last financial crisis hit in 2008 – we are now far more reliant on instant information than we ever were.

But Roger Aitken’s Forbes article cautions that financial data is “worse off” than it was a decade ago. Citing a study by Comprend and Lundquist, which tracks how transparent communication is between large European companies and their shareholders, Aitken demonstrates that the transparency of financial information is far inferior to what it was in 2007.

The article raises questions about what this lack of transparency potentially means for society in an era dominated by scandals such as the Panama and Paradise papers, where executive pay has gone up while average salaries have fallen.

Joakim Lundquist, founder and managing director of Comprend and Lundquist, thinks this lack of transparency “should be an element of greater concern” and believes not enough is being done to address the matter. “The credibility of the financial markets goes hand in hand with the commitment of companies to provide high-quality and transparent first-hand information to regain trust in the market place,” he says.

Although the study showed 90 per cent of financial stakeholders wanted companies to present their financial targets online, only 25 per cent of companies did so.