The communication between companies and their investors has now become sophisticated due to the strategic role Investor Relations (IR) departments play. These divisions are responsible for ensuring compliance with legal frameworks and are pivotal in fostering transparency and trust in the company. This research studies the various approaches used by IR practitioners involving technology adaptation, communication and precise information dissemination. A qualitative research approach consisting of interviews was conducted with ten investor relations practitioners from publicly listed companies. Their perceptions reveal persistent problems such as trust, lack of open-dialog, technological integration, and structural communication gaps. The results highlight how crucial communication is in establishing trust, while also demonstrating how rapidly information can be disseminated over secure networks, particularly AI, and on digital platforms. However explaining complex financial information to different investor demographic groups remains a challenge. Some companies have developed investor designation initiatives to address these gaps and alter the reporting templates to appeal to a wider audience. This study explains how IR departments change with new demands and addresses the strategic measures employed to close the information gap in the capital market.

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The Strategic Function of Investor Relations Departments in Mitigating Information Asymmetry in Capital Markets for Publicly Listed Companies

  • Ayten Nahide Korkmaz,
  • Cebrail Güzel

摘要

The communication between companies and their investors has now become sophisticated due to the strategic role Investor Relations (IR) departments play. These divisions are responsible for ensuring compliance with legal frameworks and are pivotal in fostering transparency and trust in the company. This research studies the various approaches used by IR practitioners involving technology adaptation, communication and precise information dissemination. A qualitative research approach consisting of interviews was conducted with ten investor relations practitioners from publicly listed companies. Their perceptions reveal persistent problems such as trust, lack of open-dialog, technological integration, and structural communication gaps. The results highlight how crucial communication is in establishing trust, while also demonstrating how rapidly information can be disseminated over secure networks, particularly AI, and on digital platforms. However explaining complex financial information to different investor demographic groups remains a challenge. Some companies have developed investor designation initiatives to address these gaps and alter the reporting templates to appeal to a wider audience. This study explains how IR departments change with new demands and addresses the strategic measures employed to close the information gap in the capital market.