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Corporate governance and corporate finance

OECD Capital Market Review of Portugal

 

 These reports are a contribution to the OECD Capital Market Series 

04/06/2020 - Following the 2008 global financial crisis and the subsequent sovereign debt crisis in Europe, the Portuguese government took important steps to relaunch the economy by addressing the capitalisation of companies and the recovery of investment. However, with a remaining high dependence on bank loans, a decreasing number of listed companies, lack of new listings and scant presence of institutional investors, Portuguese capital markets have not developed to their fullest potential. The Portuguese economy would therefore benefit greatly from further efforts to develop more diversified and integrated capital markets. Such efforts would enable private savings to effectively finance investments in the real economy and at the same time provide households with new investment opportunities.

Against this background, and at the request of the Portuguese Securities Market Commission (CMVM), the OECD is undertaking a comprehensive review of capital markets in Portugal. Through analysis and policy recommendations, the review will provide guidance to national decision-makers in their efforts to create a regulatory environment where capital markets can support business sector dynamics and long-term investment. Given the central role that capital markets will need to play in recapitalising Portuguese companies hit by the Covid-19 crisis, the review will also help Portuguese authorities to adopt measures that improve the ability of capital markets to strengthen corporate balance sheets and provide companies with long term funding. The review is funded by the European Union via the Structural Reform Support Programme and implemented by the OECD, in cooperation with the European Commission’s Directorate-General for Structural Reform Support (DG REFORM).

As first steps and based on a survey of Portuguese companies conducted in 2019, the OECD developed two reports on “Improving Access to Capital for Portuguese Companies: A Survey of Unlisted Companies” and “Understanding Delistings from the Portuguese Stock Market”. Benefitting from the analyses in these two reports and consultations with representatives of relevant Portuguese authorities, business organisations, corporate executives and other stakeholders, the final OECD Capital Market Review of Portugal will review the functioning of Portuguese capital markets, provide international comparisons and identify policy recommendations.


Survey-Unlisted-Portuguese-Companies-150x200

Date of publication
4 June 2020

 

Improving Access to Capital for Portuguese Companies: A Survey of Unlisted Companies

The OECD has conducted an extensive survey of how unlisted non-financial Portuguese companies’ use and perceive market-based financing. The survey covered large unlisted companies and some smaller companies that were considered to have growth potential. This report summarises the survey results and discusses them with additional firm- and transaction-level data from the OECD Capital Market Series dataset.

 

Download the full report

Understanding-Delistings-Portuguese-Stock-Market-150x200

Date of publication
4 June 2020

Understanding Delistings from the Portuguese Stock Market

This report discusses the factors that have driven the delistings from the Portuguese stock market and provides information about delisted companies and their rationale for doing so.

Portugal has lost two-thirds of its listed companies over the last two decades. In addition to the decline in the number of new listings, the stock market has also experienced an increase in the number of companies leaving the stock market, so-called delistings. This report discusses the factors that have driven the delistings from the Portuguese stock market and provides information about delisted companies and their rationale for doing so.

 

Download the full report

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With funding by the European Union‌ via the Directorate General for Structural Reform Support

 

 

 

 

 This report is a contribution to the OECD Capital Market Series

 

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