Stanford CIS

Trusting Porsche AG

By Stanford Center for Internet and Society on
carrera.jpg

The Economist, Nov. 13th, reports that Porsche is refusing demands from the German Bourse to issue quarterly (not seminannual) reports.  Porsche argues that reporting every three months causes firms to lose sight of long term goals.

The argument depends ultimately on one's view of the rationality of the capital markets.

Porsche's argument also reminds us of the issuer choice debate spearheaded by Romano/Choi/Guzman.  Should issuers be able to choose different securities regulatory regimes?  If more exchanges converge on American-style disclosure requirements, there will be little left of issuer choice.

Published in: Blog