“Companies that transferred after SGX tightened the criteria were on average making lower losses, although it was not clear that their overall quality was better because their share price performance, share liquidity and corporate governance were on average actually worse than those that transferred earlier,” the pair say in their report titled “Where to, Catalist?”.
SINGAPORE (Jan 15): Corporate governance advocate Mak Yuen Teen and undergraduate Mark Lai have published a study urging the Singapore Exchange (SGX) to consider disallowing companies from transferring from the Mainboard to Catalist.
SGX in Jan 2016 had clarified and tightened the criteria for transfers from the Mainboard to Catalist, especially for loss-making companies. But Mak and Lai say the changes might not have been effective.
