Dissecting Trading Statements of Malawian Listed Companies

11 Pages Posted: 19 Feb 2015

See all articles by Brian Phiri Kampanje

Brian Phiri Kampanje

Blantyre International University - Accounting and Finance Department

Date Written: February 17, 2015

Abstract

Malawi Stock Exchange Listing Rules require that listed companies should publish trading statements within thirty days prior to reporting period if profit will differ by about 20% from similar previous reporting period. The purpose of the trading statement is to alert users of the financial statements of any changes in the profitability of a reporting entity and aid in making informed decisions.

This study has however observed that in the current form and prevailing conditions, trading statements are misleading and do not serve any purpose as they appear not enforceable and there is confusion as to when trading statements must be issued out. Some entities have never issued trading statements since the listing raising doubt on their usability. The study therefore concludes that Malawi Stock Exchange should abolish listing rule for publication of trading statements but rather enforce earnings announcement periods to bring sanity to the sole capital market.

Keywords: Malawi, Trading, Statement, Stock Exchange, earnings, announcement

JEL Classification: D81, E37, E39, G14

Suggested Citation

Kampanje, Brian Phiri, Dissecting Trading Statements of Malawian Listed Companies (February 17, 2015). Available at SSRN: https://ssrn.com/abstract=2467967 or http://dx.doi.org/10.2139/ssrn.2467967

Brian Phiri Kampanje (Contact Author)

Blantyre International University - Accounting and Finance Department ( email )

Private Bag 98
New Naperi
Blantyre, 265
Malawi

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