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The value of communication: Evidence from in‐depth investor relations management data

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  • Shilei Yu
  • Ning Hu
  • Wanyi Chen

Abstract

This study investigated the value of investor communication in a firm's market valuations. The higher the frequency of communication and degree of investor involvement, the greater the increase in firm value. This effect is more prominent in companies with less information transparency, more volatile performance, and investor relations officers holding multiple executive positions and are highly experienced. Furthermore, investor relations (IR) activities can affect market valuations, including liquidity, market visibility, and institutional holdings. This study provided a new approach to measuring IR management and practical implications for governments to actively encourage companies to improve IR.

Suggested Citation

  • Shilei Yu & Ning Hu & Wanyi Chen, 2023. "The value of communication: Evidence from in‐depth investor relations management data," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(4), pages 3873-3909, December.
    • Handle: RePEc:bla:acctfi:v:63:y:2023:i:4:p:3873-3909
    DOI: 10.1111/acfi.13074
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