Economy

German DAX bigger and stricter after scandal at Wirecard | Financial

In September the DAX will grow from thirty to forty companies. In addition, listed companies in the DAX are subject to strict testing to prevent future scandals. For example, companies must have an audit committee. It is also mandatory to publish the results every three months and to have the company figures checked annually.

In addition to the expansion of the number of companies, there will also be an adjustment in the benchmark for the weighting in the DAX. With the new composition, the trading volume disappears as a criterion and only the stock market value of a company remains. Profitability is also important for future newcomers to enter the DAX. Upon entry, companies must have written green numbers for at least two consecutive financial years.

In Germany, the reaction to the scandal at fintech player Wirecard was shocked. The long-popular stock market company eventually went bankrupt after opening a cesspool of fraud and accounting tricks. This is one of the greatest fraud cases in modern German history.

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