Strategies in Financial Communication & Investor Relations

Prof. Dr. Christian Hoffmann

What is the strategic importance of Investor Relations/Financial Communication? How pronounced is the strategic management of Investor Relations? Which strategies of Financial Communication and Investor Relations can be distinguished - and what are the advantages and disadvantages? These questions were answered within the research project conducted by the Center for Research in Financial Communication by Prof. Dr. Christian Hoffmann and Sandra Tietz. Experts responsible for Investor Relations and Financial Communication (Corporate Communications) of the 160 largest listed German companies were surveyed.

The results show that Investor Relations and Financial Communication have a high strategic importance in the listed companies. Both areas have direct C-Suite access and are regularly involved in the company's strategic decision-making. In addition, they have similar priorities both with respect to the target groups and the instruments.

It has to be noted that the communication management of Investor Relations is still in its infancy. The strategic planning of Investor Relations, i.e. the derivation of goals from the company strategy as well as a long-term orientation, is relatively well-established. On the other hand, however, contribution of the department is rarely evaluated at company level. If a systematic evaluation takes place, it is mainly based on qualitative indicators.

Finally, three types of strategy in Financial Communication were presented, which were differentiated from the respective attribution of meaning to classical tasks of Investor Relations. In doing so, the type scores relatively well internally (with regard to strategic involvement) and externally (with regard to performance), which also takes into account internal target groups, positioning issues and the development of competencies.

The full presentation is available here.