listed companies. In addition, world-class non-U.S. companies increasingly are choos-
ing voluntarily to publish quarterly financial reports. For example, Pricewaterhouse-
Coopers Consulting found in a recent survey of 160 large European multinationals that
managers in continental Europe are aware of pressures for quarterly reporting.^26
However, many world-class companies continue to publish half-year reports only,
and there have been controversies in some non-U.S. jurisdictions about requiring
quarterly reporting. (For example, as discussed in a recent news article,^27 Porsche has
long refused to publish quarterly reports.) Exhibit 13.3 shows that one of the six auto
companies surveyed (Hyundai) did not publish a first-quarter financial report. Note
that although quarterly reporting isrequired in Hyundai’s home market, the company
does not choose to publish English language quarterly reports on its Internet Web
site. Also, Hyundai’s half-year financial statements are nonconsolidated. Finally,
three companies (Hyundai, Jaingling, and Toyota) do not include second quarter re-
sults in their half-year reports.
(d) Announcements of Annual General Meetings and Proxy Statements. Corporate
disclosures in announcements of annual meetings and proxy solicitations vary dra-
matically worldwide, both in terms of information disclosed and method of informa-
tion distribution. U.S. investors are accustomed to the highly detailed disclosures
contained in proxy statements published by U.S. companies, and sometimes assume
that such information is available for non-U.S. companies as well. However, foreign
companies registered with the SEC are exempt from many proxy-related disclosures,
and in general, many types of disclosure found in U.S. proxy statements are simply
not made by non-U.S. companies, whether or not they are listed in the United States.
Exhibit 13.3 does show that all of our sample auto companies except Jiangling pub-
lish at least some English language information before their annual general meetings.
Exhibits 13.4 through 13.7 illustrate the wide range of detail provided in such an-
nouncements. Exhibit 13.4 presents Hyundai’s one-page report announcing its annual
general meeting of shareholders held on March 13, 2002. The primary item (consist-
ing of a brief outline, less than one page in length), presents dividend information, fi-
nancial statement items approved at the meeting, and a list of resolutions (topics, not
details). A public announcement released by Hyundai on February 21, 2002, shown
in Exhibit 13.5, announced the forthcoming meeting, providing very sketchy infor-
mation. Hyundai’s Internet Web site also contained seven brief announcements re-
lated to annual general meeting matters, including preliminary announcements of
earnings and sales revenue, and a dividend increase.
Volkswagen’s Invitation to the Annual General Meeting of Shareholders on April
16, 2002, is far more detailed. The document contains the following items:
- Agenda
- Resolutions on dividend payments and other supervisory board and manage-
ment board actions - Information about persons proposed to be elected to the supervisory board
- Detailed information about resolutions to be voted on at the meeting
- Proposal for appointment of auditors for financial year 2002
13.5 PERIODIC FINANCIAL REPORTS 13 • 13(^26) SeeAccountancy(May 2002).
(^27) “Porsche Pulls NY Listing Plan,” Financial Times, October 17, 2002, p. 19.