People trust the information in a company's annual report over print journalism when making investment decisions, according to the National Credibility Index, an ongoing
research effort created by the Public Relations Society of America (PRSA). The trust stems from the fact that the SEC, an unbiased party, governs the contents of annual reports.
"The findings suggest that the average American is far more attuned to the nuances of financial information than might have been presumed," says Jean Farinelli, PRSA foundation
president. "Easy access to business news and information does not mean that the message is being swallowed whole."
On a credibility scale of 1 to 100, annual reports scored an 82, barely beating national business newspapers like The Wall Street Journal, which scored an 81.
From here the credibility drops dramatically. Magazines like Fortune or Forbes scored only a 76; specialized investing magazines earned a 73; and local daily newspapers
received a 61 rating.
But the credibility of annual reports doesn't transfer to company officials. CFOs earned a 70 ranking while CEOs and company presidents both received a 65. (Ray Gaulke, PRSA,
212/721-7468.)