News

2008-10-29 Grindeks – best managed enterprise in Latvia

The joint-stock pharmaceuticals company Grindeks has been recognized as Latvia's best managed enterprise, according to the business magazine Kapitals's list of the most valuable enterprises in Latvia in 2008, which will be published in the magazine's November edition.

For the third consecutive year, Kapitals, in cooperation with investment banking company IBS Prudentia and NASDAQ OMX Riga Stock Exchange (RSE) has drawn up the "TOP 101" list of Latvia's most valuable enterprises, according to their business value.

RSE carried out a survey to analyze 300 biggest enterprises of Latvia from the point of view of transparency and risk management. Comparing the management of various sectors, the highest evaluation was given to banking sector enterprises with the best results achieved by SEB banka, informs LETA.

"Almost all banks in Latvia have management that is separate from shareholders, therefore transparency of banks' administration is on a good level," says RSE Chairwoman of the Board Daiga Auzina-Melnalksne, underlining that "investors are ready to pay higher price for shares of those enterprises, where management risks are lower."

"Basically, RSE evaluated how easy it is to find essential data about the company in the public space and how open the enterprise is to reveal also the information, which is not directly related to its business activity," Auzina-Melnalksne points out.

According to her, each enterprises' evaluation depended on transparency, quality of information revealed in financial overviews and existence and accessibility of non-financial information.

Compared with the results of 2007, value reduced for almost half of "TOP 101" enterprises – 46 – and 23 of year 2007 most valuable enterprises dropped out of the 2008 list, accordingly, there were 23 newcomers. The value of 32 enterprises increased this year.

Source: www.baltic-course.com