How do public relations practitioners perceive investor relations? An exploratory study

Abstract

Purpose -The purpose of this paper is to investigate how public relations practitioners perceive investor relations itself and what the potential is in terms of public relations with empirical results. Design/methodology/approach -A web-based survey was conducted by using systematic random sampling with a probability sample of 5,000 public relations practitioners drawn from the 2004 Public Relations Society of America (PRSA) Directory. The survey consisted of three sections, investor relations functions at organizations with a multiple-answer format, perceptions on specific activities of investor relations with a seven-point Likert scale, and demographic information.Findings -Practitioners conceived that counseling with top management the most important investor relations activity and that earning a reputation for honesty the most significant result the activity can create. Moreover, practitioners considered direct involvement with top management a highly effective investor relations strategy for achieving goals. However, for handling investor relations, practitioners showed contrary attitudes regarding qualifications and undergraduate courses, indicating that public relations qualifications would be more needed for entry-levels, while basics for finance would be more necessary for undergraduates. Research limitations/implications -This research acquired an extraordinarily low response rate, 3.54 percent and targeted the US public relations practitioners only. Originality/value -This study is the first to directly investigate public relations practitioners' perceptions on investor relations as well as fairly in accordance with the current consensus that investor relations and public relations should be convergent.A strategic management responsibility that integrates finance, communication, marketing and securities law compliance to enable the most effective two-way communication between a company, the financial community, and other constituencies, which ultimately contributes to a company's securities achieving fair valuation (adopted by the NIRI Board of Directors, March 2003).Comparing this current statement to the viewpoint of NIRI in 1996, there have been subtle changes regarding the definition of investor relations:A corporate marketing activity combining the disciplines of communication and finance, and providing present and potential investors with an accurate portrayal of a company's performance and prospects. Conducted effectively, investor relations can have a positive CCIJ 12,2 200 Downloaded by Florida State University At 08:12 30 June 2016 (PT)

Behavioral dimensions of public relations leadership in organizations

“…A response rate of 3.54 percent was also found in a recent study (e.g. Hong and Ki, 2007). Small sample size limits the interpretation of study findings as it provides less precise estimates of the population parameters (Dozier and Broom, 1995).Therefore, the findings of the present study should not be considered conclusive and should be interpreted with caution.…”

Strategic investor relations management: insights on planning and evaluation practices among German Prime Standard corporations

“…It is tasked with ensuring a listed company's visibility among the financial community (Francis et al, 1997;Grullon et al, 2004;Lehavy and Sloan, 2005), as well as enhancing investors' perceptions and opinions (Clarke and Murray, 2000;Mazzola et al, 2006). The IR function strives to ensure a positive corporate image or reputation among capital market participants (Cutlip et al, 1999;Hong and Ki, 2007;Laskin, 2009). Kuperman (2000) and Laskin (2006) argued that fostering relationships with investors through two-way symmetrical communication provides tangible benefits for publicly owned corporations.…”

Invested interests? Reflexivity, representation and reporting in financial markets

“…Crucially, the expert sources the financial media routinely consult often have (in) vested interests. Analysts are often institutionally biased in their public media statements and investment recommendations (Beunza and Garud, 2005;Hong and Ki, 2007), and those who work on the 'sell-side' for investment bank clients are often complicit with the priorities of investor relations (Golding, 2003l;Kurtz, 2000). Indeed, the institutional pressures on analysts are in many respects comparable to the 'propaganda model' filters of news production (Thompson, 2009).…”

“…As Aeron Davis (2005Davis ( , 2006Davis ( , 2011 suggests, any notion of media 'effects' on the market must take account of financial traders, analysts, and fund managers who engage with the media as an active audience with expert knowledge. Nevertheless, there is evidence that financial reporters are often dependent upon elite sources, especially investment bank analysts who often act as the primary definers of financial events (Golding, 2003;Hong and Ki, 2007;Kurtz, 2000;Thompson, 2009). Drawing on the author's doctoral research into media usage by financial traders and analysts based in New Zealand, the article explores the relation between financial journalism and financial market activity and problematises the reflexive, constitutive nature of information in markets.…”