"26 Companies Excel in Investor Communication on the Bucharest Stock Exchange in 2024, According to ARIR's VEKTOR Assessment"
The Romanian Investor Relations Association Announces VEKTOR by ARIR 2024 Results
The Romanian Investor Relations Association (ARIR) has released the results of the VEKTOR by ARIR 2024, an indicator designed to assess the quality of investor communication for listed companies on the Bucharest Stock Exchange (BVB).
The VEKTOR by ARIR indicator evaluates various aspects of companies' public disclosures, transparency, and engagement practices, tailored specifically to the Romanian capital markets. This year's assessment saw the inclusion of companies in the BETAeRO index, in addition to those on the Main Market.
The evaluation criteria differ between companies listed on the Main Market and the AeRO market, an alternative trading platform for smaller companies. Main Market companies are assessed on more comprehensive communication factors due to their larger scale and greater regulatory demands, while AeRO market companies are evaluated with adapted criteria that consider their smaller size and developing nature.
The Main Market companies are evaluated on detailed financial reporting quality, continuous disclosure practices, investor relations activities, and corporate governance transparency at a higher standard. AeRO market companies, on the other hand, are assessed based on the basic quality and accessibility of information and their responsiveness to investors, acknowledging their stage of market development and available resources.
In 2024, approximately half of the evaluated Main Market companies met Criterion 7 and Criterion 5 of the VEKTOR by ARIR 2024 methodology. Over 60% of AeRO market companies met Criterion 5 and Criterion 2. The average VEKTOR by ARIR score for companies included in BETAeRO is 5.3, compared with 5 in 2023. The average VEKTOR by ARIR score for all Main Market companies is 4.1, an increase from 4 in 2023.
For AeRO market companies, 5 out of 35 evaluated companies included in the BETAeRO index achieved a VEKTOR by ARIR score of 10 for investor communication. In the Main Market, 21 companies achieved a score of 10, compared to 16 in 2023. Two Main Market companies (ALRO and Safetech Innovation) and three AeRO Market companies (Holde Agri Invest, Meta Estate Trust, and SIPEX) achieved VEKTOR by ARIR 9.
The least fulfilled criterion for AeRO market companies is Criterion 11, met by less than half of the companies. The aggregated report, along with relevant statistics, can be found in the dedicated VEKTOR by ARIR section on the ARIR website.
The VEKTOR by ARIR evaluation, which has been conducted annually since 2019, is audited annually by Forvis Mazars Romania. Starting from 2025, the indicator will be extended to include companies issuing bonds. ARIR presents, for the first time, an aggregated report showcasing the results.
The results of the VEKTOR by ARIR 2024 can be found on each issuer's page on the BVB website. The participating companies include Antibiotice, AQUILA, AROBS Transilvania Software, Banca Transilvania, BRD, Digi Communications, Electrica, Farmaceutica REMEDIA, Hidroelectrica, IMPACT Developer & Contractor, MedLife, OMV Petrom, One United Properties, Purcari, Nuclearelectrica, Roca Industry, Romgaz, Sphera Franchise Group, TeraPlast, Transgaz, Transilvania Investments, 2B Intelligent Soft, Arctic Stream, DN AGRAR Group, Norofert, Simtetl Team, and SIPEX.
For more information about the VEKTOR by ARIR methodology, please refer to ARIR's official publications or contact the association directly.
- The evaluation criteria for business communication within companies listed on the Main Market and the AeRO market, as part of the VEKTOR by ARIR 2024, cover various aspects influenced by technology such as financial reporting quality, continuous disclosure practices, and investor relations activities.
- The Romanian Investor Relations Association (ARIR) intends to extend the VEKTOR by ARIR indicator, an annual evaluation focused on business and finance, to include companies issuing bonds starting from 2025, which could potentially impact the technology used for bond issuance and communication.
