Recent research by our investor relations team in New York has found that the majority of buy-side investors (80%) assign considerable weight to intangible factors when making investment decisions. The most influential elements included quality of and confidence in leadership, transparency in reporting company performance, and corporate governance and ethical standards.
The research also found that investors consider their personal interactions with the C-suite to be critical in making investment decisions. Investors would like to interact with senior management on average seven times per year, either by email (3.1 times per year), by phone (2.6 times) or in-person (1.3 times). As expected, investors pay extra attention to CEO actions during times of financial difficulty (78 percent), strategic investments or transactions (77 percent), public image crises (75 percent) and government scrutiny (75 percent).
The 2017 Report from the Buy Side: The Power of Intangibles to Influence Investment Decisions provides six guidelines for companies and communicators looking to more effectively communicate with the investment community. The full report, including infographics, can be downloaded from this link.
The research was conducted by Powell Tate’s parent company Weber Shandwick, in partnership with KRC Research, also a Weber Shandwick company. The report was quoted in a Bloomberg article of 3 November on the importance of communicating with investors: The Secret to Wooing Investors? Communication.
To discuss your investor relations needs contact Alistair Nicholas via firstname.lastname@example.org.