INVESTOR COMMUNICATION COMING OF AGE
This week’s publication by the FRC of its Stewardship Code consultation is an important milestone in investor communication. For many years, IR has laboured to achieve the fair valuation, and the right balance of liquidity, creating context for investors to make decisions.
However this had been achieved in a vacuum; for the early practitioners there was no manual, no guides, no best practice. The IR teams have had to make it up as they went along, complying of course as they did so. Investors on the other hand have chosen to involve themselves with the companies whose shares they own – or not.
In the aftermath of the financial meltdown, (cometh the financial crisis, cometh the governance review) the regulators are examining the processes of how this works. And the Stewardship Code is a potentially very helpful part of that.
Announcing the consultation, the FRC said: “The benefits of a code which can help to bring about more effective engagement between companies and shareholders are potentially significant. They should lead to sustainable and enduring improvements in the governance and performance of UK listed companies and greater clarity in the respective responsibilities of asset managers and asset owners, which will assist the ultimate owners to hold to account those acting on their behalf.
“To deliver those benefits the code must set standards of stewardship to which mainstream institutional investors should aspire, and maintain the credibility and quality of these standards. It must foster a proper sense of ownership amongst institutional investors in the interest of their clients, and its success should be based on more effective communication between shareholders and the boards of the companies in which they invest.”
This level of clarity of interaction between investors and companies can only be helpful.
The wider question of course is that both the new (proposed) Governance Code and the Stewardship Code note in various places “…companies should…” referring to their communications. What neither does is to provide the levels of detail on how they should.
And since in the view of many there is no difference between shareholder engagement and investor relations, we should look to see if this creates the opportunity to write the definitive IR book of best practice.
To learn more about IR, join our Master Class
Creating & Managing a World Class Investor Relations Strategy
with Mark Hynes
(former FT board member and Director of Investor Relations Society UK)
March 10th & 11th, 2010
London
Learn more here
http://nuparc.com/divlearn/executive-training-investor-relations/
Blog entry by Mark Hynes found here: http://www.transparencymatters.blogspot.com/
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CCG INVESTOR RELATIONS LAUNCHES INTERACTIVE WEB SITE FOR U.S.-LISTED CHINA STOCKS
New York and Bejing - CCG Investor Relations, a leading global investor relations and strategic communication agency, announced the launch of a new interactive website, CCG IR Asia (www.ccgirasia.com), that incorporates the latest tools and technologies to keep the investment community informed about U.S-listed China stocks and management teams informed about the latest practices in investor relations.
With content in both English and Chinese, the site allows visitors to conduct research, subscribe to news, and view and share presentations and corporate profiles. Key features of the site include:
- Interactive client pages with corporate videos, presentation slides, and corporate profiles that can be embedded into blogs or shared across the medium of the visitors choosing.
- Email subscription available on each client page and the ability to share news across all social media networks.
- Constant updates through RSS on client news, agency news and white papers.
- Details on road shows locations and upcoming virtual road shows.
- Resources for investor relations professionals and chief financial officers including case studies, white papers, and soon to be launches blog.
- Stock Quotes on the universe of U.S listed china stocks
“In response to frequent requests from both institutional and retail investors, we have created a central resource for investors who wish to research and gain valuable insight into investing in the emerging leaders in the world’s fastest growing economy. In the future we plan to add exciting new features such as coverage of China growth stocks listed on the Hong Kong, Singapore, Shanghai and Shenzhen stock exchanges and interactive blogs and discussion forums for investor and investing experts to share opinions on Chinese stocks, “said Crocker Coulson, President of CCG Investor Relations. ” We view the integration of social media into investor relations practices as a way to not only increase communications but also as a valuable method or receiving feedback from the investing public.”
To hear more about best practices & tools and techniques how to deal with Investors in the upturn, join our Master Class
Creating & Managing a World Class Investor Relations Strategy
with Mark Hynes
(former FT board member and Director of Investor Relations Society UK)
March 10th & 11th, 2010
London
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http://nuparc.com/divlearn/executive-training-investor-relations/
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COMPANIES WITH GOOD INVESTOR RELATIONS CAN COMMAND PREMIUM
Mumbai: Fund managers are willing to pay a premium on share prices of those companies which have best investor relation practices in place, a joint survey conducted by Interconnected Stock Exchange and Investor Relations Society said.
The survey found that 54 per cent of institutional investors are willing to pay a premium ranging between 15 per cent to 20 per cent on the prevailing share price of the companies’ which have exemplary investor relation practices in place.
“Research has found that a good Investor Relation program can have a positive impact on corporate image and there appears to be a good amount of correlation between image and share price,” Interconnected Stock Exchange (ISE), Managing Director P J Mathew said.
“Investors do value good investor relation, and that when compared to the more developed western markets, Indian companies still have room for improvement in meeting expectations of global fund managers,” Investor Relations Society’s President M S Anad said.
“Our findings show that companies can and should invest much more in investor relations than they currently do, especially when doing so will result in a better valuation of their stocks”, Mathew explains.
The study found that this is particularly true of small-and mid-cap companies, where good IR is more of a challenge given limited resources and experience.
In the Study, it was found that 20 per cent of investors would pay a premium of anywhere between 10 to 15 per cent, and about 16 per cent of institutional investors would pay a premium of 5- 10 per cent.
The study found that institutional investors believed the credibility of management and investor relations professionals was the most important quality of a firm’s IR. The survey covered 24 fund managers based in India.
To hear more about best practices & tools and techniques how to deal with Investors in the upturn, join our Master Class
Creating & Managing a World Class Investor Relations Strategy
with Mark Hynes
(former FT board member and Director of Investor Relations Society UK)
March 10th & 11th, 2010
London
Learn more here
http://nuparc.com/divlearn/executive-training-investor-relations/
Article seen: http://economictimes.indiatimes.com/Companies-with-good-investor-relations-can-command-premium/articleshow/5333248.cms
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COMPLETE TWITTER STRATEGY RULES GUIDE FOR INVESTOR RELATIONS – CREATING OFFICIAL CORPORATE TWEETS
Twitter mania is everywhere. Whether the quickly deafening crescendo heralds a change in the world’s communication paradigm, or the impending pop of the social networking bubble remains to be seen. What cannot be ignored is that businesses are embracing Twitter for the benefits they can gain from direct, real-time, two-way communication with consumers and business partners. It is only a matter of time before shareholders and company executives alike start asking, “Where is the company’s investor relations on Twitter?”
TWITTER IS DIFFERENT FOR IR
Jumping on the Twitter bandwagon and establishing a corporate presence is a simple task. The most difficult part of the whole process might be chasing someone off the of the username that is the company’s registered trademark.
Otherwise, creating a Twitter account with a username, and typing in sub-140 character messages is a no-brainer. Bragging about company achievements, talking up new products, sending out links to coupons, or even just reminding the business’ followers about the company are par for the course when it comes to business Twitter usage.
Unfortunately, for the Investor Relations Department things are not so easy. There are legal pitfalls to Twitter for business use, as well as regulatory requirements for publicly traded companies on Twitter. Don’t forget that the whole Twitter business is mot if the tweets the company sends out don’t add up to the kind of Twitter that people follow. Between the prospect of getting the company in legal trouble, developing robust following, responding to shareholder concerns in a fast-moving forum, and just coming up with something to say in the company’s tweets, can tie the most technically savvy IR department in knots.
Fortunately, Twitter for Investor Relations can be broken down into an easily manageable process that provides tangible benefits for the corporation, the shareholders, and IR. This guide provides a step-by-step plan to get a business Twitter strategy running quickly. After all, quick communication is what Twitter is all about.
RULES AND STRATEGY TO TWITTER FOR BUSINESS INVESTOR RELATIONS
1) – Tweet Officially
a) Link to Official Twitter Account – Don’t make shareholders or analysts guess about your intentions. If you are going to use Twitter or other social networks to communicate with shareholders and others, make it official. Have a link directly from the Investor Relations landing page to the IR Twitter account along with a statement that this is the official Twitter account for corporate IR news. You don’t have to explicitly say it, but the implication is that anything else out there on Twitter, is rumor, innuendo, or speculation from non-official sources
b) Have a specific Twitter Account for Investor Relations - Don’t use an umbrella corporate Twitter account. Do not share a Twitter username with any other department or purpose other than Investor Relations. Any lawyer with 5 minutes of experience knows that the quickest way to defeat legal protections is to show examples where these were violated, ignored, or otherwise misused or unused. In other words, your carefully crafted disclaimers, tweets and links will all be for naught if the marketing guys throw up even a single tweet with hyperbole that proves not every precaution to ensure all information posted on Twitter is accurate. Use an IR only account and include IR or some other identifier in its name.
2) Create A Disclaimer Specifically for Twitter – The temptation to just use one of the standard disclaimers for Twitter is understandable. However, Twitter is unlike any other form of communication already engaged in, and it needs its own disclaimer. Do include as much of the standard boilerplate disclaimers as necessary but also include Twitter specific information.
3) Post Twitter Disclaimers - Immediately next to your link to the official Twitter account, place a Twitter disclaimer. There will actually be two Twitter disclaimers required. The first is the short and sweet one that goes with the official link to the official Twitter account. The second is the one that is as long as the lawyers want it to be. The last sentence of the shore one should be an “important note” that this is only the quick disclaimer and a link to the full disclaimer.
4) Create Twitter Terms of Use or Twitter Terms and Conditions - Disclaimers are one thing. Terms or Conditions of usage are another. Draw up Twitter specific terms to help protect the company against mistakes. Wal-mart created a stir with its laundry list of terms, which it has relabeled as “Twitter Discussion Guidelines.” The provide an excellent starting point for creating Twitter TOS.
5) Require Acceptance of the TOS or TOC – The software industry pioneered the concept of forcing consumers to agree to something without asking. CDs or Floppy Disks came in envelopes that said by opening the envelope you agree to a whole list of terms and conditions. US courts have repeatedly upheld these “contracts” as valid. Do the same thing for your Twitter account. Use the “Bio” section to include a sentence which states that following or reading the posts on Twitter constitute acceptance of your terms of use.
6) Accept Limitations on These Safety Features - Disclaimers and Terms and Conditions can go a long way toward shutting the door on may avenues of liability. However, what stands up against a tort claim in court, and what stands up against the actions of a governmental regulatory agency such as the SEC, are two very different things. However, do not neglect these important safeguards. For every avenue of attack that company eliminates, the less chance there is for something to “stick”.
With official Twitter accounts, disclaimers and terms in place, the company’s investor relations department has done everything it can reasonably be expected to do in order to protect the company from unforeseen Twitter liability issues. Now, investor relations is ready to Tweet, What to tweet and how to keep what IR posts on Twitter from causing trouble is the next piece of Twitter strategy to get into place.
Article seen on: http://www.corporate-eye.com/blog/2009/12/twitter-guide-investor-relations/
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DUBAI FINANCIAL MARKET VOTED ‘BEST EXCHANGE FOR INVESTOR RELATIONS’ IN THE MIDDLE EAST
Dubai Financial Market has been honored with the ‘Best Exchange for Investor Relations’ in the Middle East award during the inaugural ceremony of The Middle East Investor Relations Society (MEIRS) Awards. The ceremony took place at the DIFC conference center on November 23rd 2009.
Receiving the award, Fahima Al Bastaki, Senior Vice President, Market Development Division, Dubai Financial Market expressed her sincere thanks to the organizers of the event, saying, “It is a privilege and honor to receive this prestigious award which recognizes DFM’s ongoing efforts over the last few years in encouraging our listed companies to adopt best practices in IR”.
“DFM’s goal has always been to work closely with the Middle East IR Society and our listed companies to promote IR best practices and help manage evolving investor expectations. Recently, DFM hosted an interactive workshop on investor relations in collaboration with the MEIRS. A survey conducted during the workshop demonstrated an increasing number of listed companies are addressing the IR function seriously by appointing dedicated teams. undoubtedly, this award is a recognition of our continued efforts and endorses DFM as the leading exchange at the forefront of IR developments in the Middle East,”
Al Bastaki added.
Gretchen Haynes, General Manager of the Middle East Investor Relations Society said, “DFM was the first Exchange Member of the Society and we are delighted to see them has shown its commitment to IR through various initiatives and played a pivotal role in encouraging public joint stock companies to communicate effectively with their shareholders.”
To hear more about best practices & tools and techniques how to deal with Investors in the upturn, join our Master Class
Creating & Managing a World Class Investor Relations Strategy
with Mark Hynes
(former FT board member and Director of Investor Relations Society UK)
March 10th & 11th, 2010
London
Learn more here
http://nuparc.com/divlearn/executive-training-investor-relations/
Article seen: http://www.ameinfo.com/217900.html
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INVESTOR RELATIONS: TELLING THE MESSAGE STRAIGHT
Matt Barkett stresses how telling the straight story in tough financial times is essential to credibility
Viewpoint by Matt Barkett, Dix & Eaton, WCW Guest Columnist
The bankruptcies of the big automakers earlier this year may have captured most of the headlines, but thousands of smaller U.S. companies will also have gone the Chapter 11 route by the time 2009 mercifully comes to an end. And many more may follow next year before the economic recovery fully takes hold. Is that bad news?
Not necessarily, especially for cash-strapped but otherwise viable companies that can effectively communicate the opportunity Chapter 11 provides to address their underlying financial challenges and restructure, regroup, reposition and re-energize for the recovery.
When properly understood, bankruptcy no longer carries the stigma it once did. Chapter 11 is a tool that many well-respected corporations have used very effectively to implement their turnaround strategies.
Efforts to turn around companies with good products, services and people have become increasingly common in this unprecedented economic environment. In fact, the American Bankruptcy Institute reports that as conditions steadily declined in the first half of this year, Chapter 11 business reorganizations more than doubled over the same period a year earlier.
By shaping attitudes and driving behaviors among key audiences, effective communication — before, during and after a Chapter 11 filing or other financial restructuring — can be a key lever for engaging and maintaining the support of vital constituencies, and preserving the organization’s value over time. Thus, a company’s relationship with its various constituencies — especially customers and employees — has never been more critical.
Specifically, effective communication during periods of financial distress can:
* Align, motivate and retain employees
* Sustain and strengthen customer relationships
* Help direct and shape media coverage
* Encourage support from other influencers and situation-specific audiences such as vendors and suppliers
* Anticipate, minimize and/or mitigate potential opposition
An effective communication strategy should support the organization’s legal and strategic goals and help drive the desired outcomes. Timing, responsibilities and tools should be carefully planned and thoroughly vetted well in advance of any filing.
Crisp, clear key messages should seek to build greater appreciation for the company’s long-term strategy and viability, and to create better understanding that Chapter 11 will facilitate the restructuring process. Other communication tools may include a news release as well as audience-specific meeting scripts, e-mails, letters and frequently asked questions.
Want evidence of what effective communication can do to position a company? Consider Continental Airlines, which Fortune magazine has named as the world’s most admired airline for the past six years in a row. Back in the early 1990s, Continental was in bankruptcy and some people were questioning whether it would even survive. And then there’s Delta Air Lines, which exited bankruptcy two-and-a-half years ago flying to more destinations in more countries than any other airline, and has now become the world’s largest airline.
While your goal may be to stay out of the headlines, communicating effectively can at least help to ensure that your key stakeholders hear the straight story.
To hear more about best practices & tools and techniques how to deal with Investors in the upturn, join our Master Class
Creating & Managing a World Class Investor Relations Strategy
with Mark Hynes
(former FT board member and Director of Investor Relations Society)
December 1st & 2nd, 2009
and
March 10th & 11th, 2010
London
Learn more here
http://nuparc.com/divlearn/executive-training-investor-relations/
Article seen: http://www.whitefieldconsulting.com/wordpress/?p=1610
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IR AND THE RECOVERY?
“With the FTSE 100 index rising above 5.000 for the first time since Lehman Brothers collapsed hastening in a frenzied perod of economic instability, the UK appears to be inching towards something of a slight recovery following government bail-out measures and Bank of England quantitative easing.
Evidence for this includes rising house prices (FT House Price Index rose by 0.4 per cent from its level in July) and consumer spending as a growing sense of confidence takes hold.
Despite this, fears persist that instead of the more common ‘V’ shape recession, the UK might in fact endure a recessionary double dip in the shape of a ‘W’.
However, there are steps IROs can take to enhance their company’s reputation during bearing markets. The Society has repeatedly advised members during the downturn of the importance of maintaining clear, concise communications with investors, even as their companies’ share prices were dragged down with the market, in the knowledge that come the recovery, those some investors would remember IR teams with whom they enjoyed better dialogue with. In the Autumn 2009 edition of the IR Society’s quarterly magazine, Informed, which will shortly be sent to members, our special feature looks at this issue in the general context of what fund managers look for from investor relations.
With that in mind, while we all hope the recovery is making its first tentative steps into daylight, in the event of a new economic storm we would urge IROs and IR providers to continue to deliver their company’s strategy and message to their investors, because it is well understood that the investor community has a long, collective memory…”
Join our Master Class
Creating & Managing a World Class Investor Relations Strategy
with Mark Hynes
(former FT board member and Director of Investor Relations Society)
December 1st & 2nd, 2009
London
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Article seen: The IR Society Bulletin – issue 327 on September 11th, 2009
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Report reveals early adopters using Twitter for Investor Relations
Social networks are having a dramatic impact in helping marketers and public relations professionals increase brand awareness and build new relationships with consumers. But how have these tols been adopted in the highly regulated world of investor relations?
To answer this question Q4 analyzed 80 public companies and their use of Twitter during Q2 2009 earnings season. Some of the findings of the report which were issued in a press release revealed that:
- 55% are using Twitter for investor relations
- 48% are using Twitter to engange with their audience
- 34% of the companies were from the technology sector, including Cisco, Dell, Oracle and Sun to name a few
- 68% provided a link to their Q2 quarterly earnings release.
Additionally findings indicate these companies are using the channel primarily for sharing previously disclosed information such as news and upcoming events. However, a significant number of thse early adopters have begun moving from a straight broadcasting approach to engagement – meaning they are posting regular updates to news and events on their site, but also interacting with people, answering questions and providing additional information.
Join our Master Class
Creating & Managing a World Class Investor Relations Strategy
with Mark Hynes
December 1st & 2nd, 2009
London
Learn more here
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Article seen http://www.q4blog.com/2009/08/26/report-reveals-early-adopters-using-twitter-for-investor-relations/
