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NASDAQ Releases 2014 Best Practices for Earnings Calls
January 27, 2015
NASDAQ has recently released its Investor Relations Best Practices Report on earnings calls. Best practices include: hosting live calls with a Q&A, scheduling calls during non-market hours and CEO participation.
Participation. As to be expected, the most common participants on earnings calls are CEOs, CFOs and IROs. According to NASDAQ, 97 percent of companies report that their CFOs participate in earnings calls, followed by CEOs at 93 percent and IROs at 80 percent. All three positions have had increased participation over the years, with CEO participation rising four percent over the last five years. NASDAQ points to this increase as an “indication of the growing transparency and disclosure demanded of companies.”
Structure. Roughly 70 percent of companies said they host live earnings calls with a Q&A portion, while less than 10 percent reported hosting pre-recorded calls.
Timing. Nasdaq reports that the majority of companies surveyed host their earnings calls during non-market hours, with approximately 31 percent hosting their calls after the market closes and 25 percent hosting theirs before the market opens. Although 45 percent of companies host their earnings calls during market hours, NASDAQ advises against this, as it can conflict with normal business operations.
To read the full IR Best Practices Report, click here.