INCORPORATING SHAPENZ

Research Results

Fewer trust business, 50% uncomfortable about buying NZX shares

29 Mar 12

Fewer trust business, 50% uncomfortable about buying NZX shares
Business decision makers feel least comfortable about stock exchange investments right now

70 per cent of New Zealanders are now “less trusting” or “totally distrusting” of the honesty and integrity of businesses in New Zealand after recent finance company failures.

 

Overwhelmingly New Zealanders are looking for honesty, integrity and high ethical standards and the failure of the finance companies has seriously shattered investing confidence, according to a nationwide  Horizon Research survey of 1000 adults (March 22-25).

 

Results were announced by the chairman of the NZ Cooperatives Association, Mr Blue Read, at a celebration at Parliament launching the UN International Year of Cooperatives 2012 in New Zealand.

 

Mr Read said New Zealanders wanting an alternative needed to look no further than the cooperative structure, which is well entrenched in our economy, was based on different principles to the investor-driven corporate businesses and had weathered the global financial crisis in relatively good shape.

 

“The Horizon Research shows 52 per cent of New Zealanders prefer businesses that are owned by the people who use the businesses and 55 per cent place greater trust in cooperatives,” he said. “An overwhelming majority of people don’t know about cooperatives, but are keen to learn more.”

 

“Cooperatives are making it through the global financial downturn a lot more intact in terms of their financial equity, integrity and reputational performance.”

 

The Horizon survey finds the impact of the finance company collapses has also flowed through to the general investment confidence.

 

52.8% per cent of New Zealanders rated themselves as either “uncomfortable” or “very uncomfortable” about investing in publicly listed companies on the New Zealand share market at the moment.

 

Among business managers and executives, 55.9 per cent are feel uncomfortable at the moment about investing in publicly list companies on the New Zealand share market. 5.2% of this group feel very uncomfortable, while 29.1% feel comfortable (3.66 of these very comfortable).

 

More than half of business proprietors and self-employed are also feeling uncomfortable about investing in listed companies.

 

Investor confidence survey resuls by occupation are:

 

Generally, how comfortable would you feel at the moment about investing in publicly listed companies on the New Zealand share market?



A. Very comfortable
B. Comfortable
C. Uncomfortable
D. Very uncomfortable
E. Not sure

 

Total

A

B

C

D

E

 

             

 

ALL

1007

2.8%

24.9%

34.3%

17.9%

20.1%

 

     

 

OCCUPATION

   

 

Business Manager/Executive

6%

3.6%

25.5%

50.7%

5.2%

14.9%

 

Business Proprietor/Self-employed

7%

1.2%

20.3%

48%

21.9%

8.6%

 

Clerical/Sales Employee

14%

1.1%

38.6%

32%

12.1%

16.1%

 

Don't know/prefer not to say

3%

0.1%

14.4%

40%

23.8%

21.7%

 

Farm Owner/manager

1%

2.7%

92.8%

 

4.4%

 

 

Labourer/Agricultural or Domestic Worker

7%

6.3%

8.1%

16.3%

37.9%

31.5%

 

Retired/Superannuitant

10%

7.7%

25.2%

29.4%

20.5%

17.2%

 

Teacher/Nurse/Police or other trained service worker

9%

0.4%

13.7%

32.2%

25.3%

28.4%

 

Technical/mechanical/Skilled Worker

6%

5.7%

32.2%

28.8%

17.2%

16.1%

 

Unemployed/Beneficiary

7%

10.1%

24.3%

18.3%

20.6%

26.6%

 

Home-maker (not otherwise employed)

6%

 

17.4%

28.6%

14.8%

39.2%

 

Professional/Senior Government Official

4%

 

42.8%

28.9%

8%

20.3%

 

Student

7%

 

32.9%

41.2%

5.1%

20.8%

 

 

Further detailed analysis is available from Horizon Research, e-mail: Grant McInman, Manager gmcinman@horizonresearch.co.nz

 

Mr Read's speech is here.