Make It a Must for Singapore Companies to Disclose Content of Earnings Calls

In this way, there is no need to wonder whether the information is material or not

- David Gerald

When companies plan to make a significant announcement, they will halt trading in their shares, post the information on the Singapore Exchange's website SGXNet, and then lift the trading halt later.

This process is designed to ensure a level playing field for all recipients of the information so that no party or parties have an unfair advantage over others in the market.

The same underlying principle underpins all disclosures, and rightly so. Yet there is one grey area which exists—where material or important information may be inadvertently disseminated—which deserves closer regulatory scrutiny: analyst briefings or earnings calls.

After posting their results online, many firms subsequently conduct earnings calls, where senior management present the results and take questions from analysts and investors who have been invited to attend.

Companies also engage in analyst briefings—dedicated sessions conducted online or in person which are intended to provide deeper insight into performance, outlook, and strategy.