The perceptions of the institutional investor regarding the quality of the annual report

Abstract

This is an exploratory report. It addresses the impact that the quality of the annual report has on the institutional investor's perception of the image of a company and how such quality influences their investment decisions. The resaarch methodology is based upon interviews in which a structured questionnaire was used as a data gathering mechanism. The portfolio managers who responded to the questionnaire are responsible for the combined management of financial funds amounting to R12biliion. The main conclusion reached in this report is that while elle annual report plays a meaningful role in the investment decisions of portfolio managets, it competes with other sources of infornlationwhich are used to make investment decisions. While the preparers of the annual reports have an understanding of the informational needs of institutional investors, it is suggested that greater emphasis should be placed by the preparers on the presentation of future orientated financial information.