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Government approves allowing publication of results every six months

| News | Corporate Law and M&A

Gonzalo Cerón analyzes the Draft Law modifying the revised text of the Law on Capital Companies in El Confidencial

As part of the fight against the short-term investment mentality at European level, the government has decided to stop being an exception in the EU and to allow the publication of results every six months (instead of forcing every three). A measure that, however, has not yet reached the large quoted companies and which the US has yet to sign up to.

The possibility of only publishing results twice in the financial year was included in the EU Transparency Directive in 2013, and subsequently transposed in France (2015), Germany (2016), Italy (2016)... Spain is now taking advantage, with the transposition of the new 2017 directive (on the involvement of long-term investors), to sign up to the relaxation of the periodicity of corporate results.


Gonzalo Cerón, partner at Andersen Tax & Legal and head of the firm's Commercial Law Department, states that "transparency is a fundamental part of listing on the stock exchange", and that it is normal that within a globalized capital market, companies strive to attract investors by periodically sharing information.

In the end, the expert explains, the dynamic between publishing quarterly results or not falls within the balance between the suspicion of regulators against short-term investment (especially after what has been learned after the financial crisis) and the value of transparency in the capital market, especially in attracting investors.

You can read the full article at El Confidencial.

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