The Euromoney-First Boston Global Stock Index
"The bad report is the one that complies with the law and the various requirements, and doesn't try to communicate,' said Ken Wild, partner in charge of accounting research at Touche Ross. "The good annual report communicates the most important information clearly and in the most prominent position. It's highlighting the right information, designed with the reader in mind.'
In Euromoney's special poll, these qualities attracted investors to the three annual reports produced by the three companies in the Royal Dutch/Shell Group. The reports give a general overview of the company in the front, using magazine-style stories, leaving the detailed statistics at the back for those wishing to delve deeper. Graphs and photographs are constructively used, the investors said, adding to the story, not distracting the reader's attention away from the reports' main purpose with glossy but irrelevant artwork.
Delight at Shell's annual reports did not extend to other company reports. Most investors polled were very critical. One investor complained about the lurid colour of the green tree sprouting from a pillar on the cover of Manufacturers Hanover's annual report. Others expressed blanket disapproval of reports from Britain, Finland, France, Germany, Italy, Luxembourg and Switzerland, citing lack of disclosure.