The NIPO survey results, which polled almost 300 firms, and which were announced during the National Bourse & Business Conference, also stated that companies in which shares remain in family hands are less enthusiastic about a Stock Exchange flotation. Many regard the greater transparency associated with a listing as burdensome.
Of the 294 companies polled, the larger concerns view the greater accountability required by a market listing as less of a problem. Family-owned companies are generally smaller than non-family owned businesses. This suggests larger concerns possibly had more experience in providing information to third parties and were also more used to justifying corporate policy to supervisory boards.
The most frequently cited advantage of a Stock Exchange listing was that it offered access to the public capital market. Other reasons mentioned included an enhanced corporate profile and a more transparent share pricing mechanism. In the eyes of many entrepreneurs, however, the disadvantages of a listing included the compulsory disclosure of information; price sensitivity; the advent of more than one shareholder, and the cost involved.
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