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Posts tagged “investor communications”

The Enduring Power of the Earnings Report

How important are quarterly earnings releases and conference calls in an era of abundant information and nanosecond trading?  Very important, according to a recent study co-authored by Stanford professor Maureen McNichols. The study found that even in today’s environment, the earnings report and conference call not only have the ability to move markets (“during the three days surrounding quarterly reports, share prices are four times as likely to have big moves as they typically do”) but also can serve as indicators of how stocks will continue to move in the months ahead. 

Jeff Sommer of The New York Times also recently stated in an article that earnings reports can still move markets and traditional metrics still matter, especially when investors are looking for a…

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What’s to hide? Will FASB proposal materially limit transparency?

For public companies, materiality has long been at the center of best-practice investor relations.  Our experience has been that more open, transparent communications by companies typically leads to better relationships with investors, a level playing field and more accurate valuations.  In the wake of the Financial Accounting Standards Board’s stunning proposal to change the definition of materiality, we invited a seasoned financial services executive to offer his perspective on what the FASB is proposing. 

Armando Ramírez (MAcc, MBA) has held senior-level positions at large financial services companies in the U.S.  During his 17-year tenure at National City Corporation he primarily worked in strategic planning, corporate development and executed over 50…

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Strong themes abound in annual reports

From differentiation to discipline, consistency to partnership, the most recent annual report season featured a variety of strong themes as companies endeavored to tell their stories in new and compelling ways. Here are a few notable examples:

Sherwin-Williams

A flexible set of colors and design elements has helped Sherwin-Williams present a consistent brand identity from year to year.  Distinctive colors and photography highlight the company’s four reportable segments throughout each report, as well as the company overview and geographic reach map. As a result, the three latest reports have an impactful, consistent style that reflects the company’s leadership and strong financial performance in the paints and coatings industry.

Fairmount Santrol – Defining…

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From the investor’s perspective: Insights on corporate governance discussions with management

Last week’s NIRI annual conference in Chicago was full of great learning and networking opportunities as well as insights into the latest technologies for the world of investor relations. During my time at the conference, I had the opportunity to participate in a really interesting session featuring three corporate governance professionals representing institutional investment firms TIAA CREF, Northern Trust and T. Rowe Price.

At Dix & Eaton, we’ve always believed there is value in meeting with the corporate governance professionals responsible for making proxy voting decisions for your investors – in addition to the portfolio manager making the investment decisions.  This discussion reinforced our view and belief that the trend of corporate governance roadshows…

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10 ways IROs can keep the internal lines of communication open, too

Investor relations professionals spend a good portion of their time communicating with external audiences – buy-side analysts, portfolio managers, sell-side analysts, retail investors, proxy advisory firms, media and more.  And rightly so, since they are tasked with telling their company’s investable story and managing relationships with the Street.  

At the same time, with the competition for capital increasing and activists becoming more numerous and aggressive, IROs are being additionally challenged to keep their key internal constituencies up to speed regarding investor engagement and sentiment. We are working with more and more of our clients to implement best practices for communicating with their internal audiences – particularly the senior management team…

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