Every “I” Dotted, Every “T” Crossed

03 August 2007

This week I had the pleasure of spending some time with two senior executives of CNW GroupCalendar, a major Canadian news and information publication company.  The CEO, Tom Enright, made an interesting observation about this year’s Q2 financial reporting season.  Apparently companies are taking longer to report their financial results following the end of a quarter.  In 2005, 290 Canadian companies had reported results by August 2nd.  In 2006 that number was down to 263 and in 2007 the number was down again to 256.

The major reasons given for the extra time to report earnings were the added regulations in today’s Sarbanes Oxley obsessed world, the implementation of disclosure control processes within companies, and the ever-looming risk of civil liability legislation that makes management accountable.

While the short-term focus of many institutional investors continues to drive companies to report quickly, it is nice to see that companies are taking the time to ensure that every “I” is dotted, every “T” is crossed, and that the rules are followed.

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