The PFS Program publishes its 13th semi-annual Survey of Online Investor Relations of the Ten Largest Listed Companies (by market capitalization) in eleven Central and Eastern European (CEE) countries.  PFS Program Assistant Magdalena Grabowska and PFS Program Intern Dagmara Lubczynska conducted the survey from July 2 through September 3, 2007.

In this edition of the survey, disclosure in almost all categories remains at or reaches its highest level since the first survey was conducted in August 2001.  This trend has been observed since February 2006 and may be viewed as sustainable.  In particular, this edition of the survey documents a dramatic increase in disclosure of detailed governance information.  59% of the companies surveyed provide additional information about management online, compared with 53% in February 2007 and 45% in August 2006.  This is the largest percentage recorded since the surveys began in 2001.  Furthermore, 51% of the companies surveyed provide additional information about board members online.  This is also the largest percentage recorded since the first survey and represents a significant increase over previous surveys:  40% in February 2007 and 37% in August 2006. 

Survey results include the following:

• Websites:  In ten of the 11 CEE countries surveyed, each of the ten largest listed companies has a local-language website on August 15, 2007.  In Bulgaria, nine of the ten companies surveyed have a local-language website.  In the previous two surveys, each of the 110 CEE companies surveyed had a local-language website on the record date.  93% of the companies surveyed have an English-language website; the percentage has remained constant for the past 18 months. 
  
• Information on Management:  86% of the companies surveyed provide a list of management online; 59% provide additional information on management.  Disclosure in the former category increased slightly (4%) since the last survey whereas the latter represents a record high since the first survey was conducted and a significant increase vis-à-vis February 2007 (53%) and August 2006 (45%). 
  
• Information on Board Members:  82% of the companies surveyed provide a list of board members online and 51% provide additional information on board members.  The former category increased to a slightly higher new record since the first survey was conducted, from 81% in February 2007.  Disclosure in the latter category also represents a new record high and a significant increase from 40% in February 2007, 36% in August 2006 and 41% in February 2006.
  
• Comparisons with BRIC and Ukraine:  The largest listed companies in BRIC equal or outperform their CEE peers in every category.  However, the gap continues to narrow.  Furthermore, when companies in BRIC are compared with peers in the eight CEE countries that joined the EU in 2004, the difference between the peer groups is much smaller.  The Ukrainian companies surveyed disclose less information than their peers in both BRIC and CEE.

The complete survey, a slide presentation of the data and the company database are now available online at: http://www.pfsprogram.org/capitalmarkets_research.php

About the Partners for Financial Stability (PFS) Program

The United States Agency for International Development (USAID) established the Partners for Financial Stability (PFS) Program in 1999 as a public-private partnership to help complete reforms necessary to create sound, private and well-functioning financial sectors in the eight Central and Eastern European (CEE) countries that have since joined the European Union. In 2005, the geographical focus of the program shifted to South East Europe (SEE). 
 
East-West Management Institute (EWMI), a New York-based not-for-profit organization, is currently the primary implementing partner.
 
The PFS Program is mandated to fill remaining gaps in the institutional development of the financial sector in CEE and SEE countries through regional integration and cooperation, selective technical assistance programs and the practical application of lessons learned in neighboring countries.  The substantive areas covered under the PFS Program are:  accounting, auditing, banking, capital markets, insurance and pension reform.  For more information, please visit the PFS Program website at http://www.pfsprogram.org/

Contact

Geoffrey Mazullo
Director
Partners for Financial Stability (PFS) Program
East-West Management Institute, Inc. (EWMI)
Email: gmazullo@pfsprogram.org
Internet:  http://www.pfsprogram.org/