The quality of a company’s IR communications greatly influences its stock price, its corporate value, and investors’ evaluation of the company. Disparity between the information communicated by a company and the information expected by investors can result in damage to the company’s corporate value. In order to eliminate this disparity, it is necessary to fill the gap that exists between the company and the market (shareholders and other investors) in regard to information and expectations. This can be done by utilizing IR communications crafted from the perspective of investors and the logic underpinning their evaluations. As a result, we believe it is imperative that companies work to guide their stock prices to their fair value by utilizing such effective, strategic IR communications.
Maintaining Fair Value