The importance of private investors for investor relations

The Germans’ relationship with shares is difficult: despite the population’s good financial situation, there is a regular phobia of shares. Only 15.2 percent of Germans currently participate in the stock market (Deutsches Aktieninstitut e.V., 2020). In order to win over skeptical private investors, sufficient information in particular is indispensable – providing it is a central task of investor relations.

The short study therefore examines the question: How important is communication with private investors on IR websites of DAX and MDAX companies?

The study is based on a content analysis of the IR websites of the 90 companies listed on the DAX and M-DAX.

The brief study shows that only a small proportion of DAX and MDAX companies take private investors into account in their digital IR communications. Information needs are addressed much more frequently than reasons for not investing. It is interesting to note that the importance of individual information needs of private investors is not reflected in the companies’ focus on content.

By Fiona Vaaßen, Jana Düthmann, Christian P. Hoffmann & Sandra Binder-Tietz