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Investors Look To CEOs To Ensure Transparent Financial Reporting Amid Global Uncertainty, According To Research From BlackLine
According to the survey, 63% of investors demand to know who is accountable if one of their portfolio companies misreports its finances. More than half of those surveyed added that they become frustrated when companies cannot communicate who is ultimately responsible for signing off on financial reports. Surprise disclosures or restated financial statements are viewed especially poorly, with 98% of investors revealing they would be adversely impacted if a company misreports its finances.
Investor trust is reduced further when reporting processes are not clear; 38% indicate that a lack of visibility over how financial data is gathered, checked or analyzed makes them doubt its accuracy. More than half (58%) of investors are increasingly concerned by this lack of transparency, pointing out that the status quo is not sustainable in the longer term, particularly in unpredictable and unstable economic periods.
As businesses across the globe attempt to navigate the uncertainties created by the COVID-19 pandemic, it is more crucial than ever for business leaders to have a clear view of the numbers. In fact, the majority (92%) of investors agree that real-time visibility into finances is critical if companies want to stay competitive in the next 12-18 months.
"This is a challenging time for business leaders globally; never before has an accurate and up-to-date view of company financials been so important," said
Encouragingly, many investors are now looking to technology to improve the way financial data is used and handled, as over two thirds (69%) believe artificial intelligence (AI) and machine learning will lead to greater accuracy and transparency in accounting and reporting. A further 58% also believe AI-driven bots will one day be able to calculate the best investment opportunities.
"Investors' growing concerns over the details and accuracy of financial reporting is a call to action for companies to ensure they have a modern accounting approach in place – transparency, real-time insight and accountability are crucial," continued
The full findings are outlined in 'Accountability in Finance: The Buck Stops at the Top', the second whitepaper from
Notes to editors
The research was conducted by Censuswide with 763 institutional investors in six markets (US,
- US: 204
UK: 150 France: 101 Germany: 101 Australia: 107 Singapore: 100
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Ashley Dyer, PR Director, BlackLine, 818-936-7166, email@example.com