Investor Relations and Financial Communication

Investor Relations and Financial Communication
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Equips students and professionals with the fundamental skills and knowledge  needed to succeed in investor relations and financial communication   Investor Relations and Financial Communication  is a comprehensive, up-to-date introduction to the investor relations and financial communication profession. Written by a leading educator and professional consultant, this authoritative textbook provides the well-rounded foundation necessary for anyone wanting to begin a career as an Investor Relations Officer (IRO). Detailed yet accessible chapters describe all essential aspects of the field, including communication skills, basic financial knowledge, legal and regulatory guidelines, professional standards and practices, and more.  Organized in five sections, the book first identifies and defines the jobs available in investor relations and financial communication, detailing the responsibilities, titles, salaries, and key players in the industry. After thoroughly explaining the disclosure of financial and non-financial information, the author describes the regulatory environment in which professionals operate and offers expert insight into issues of corporate governance, environmental sustainability, social responsibility, shareholder activism, and crisis management. Subsequent sections highlight the day-to-day activities of investor relations and financial communication professionals and discuss the future of the field. This invaluable textbook also:  Describes the responsibilities of the Investor Relations Officer throughout initial public offering, periodic reporting, and performance evaluation Discusses the role of investor relations professionals in disclosing financial information and educating the investment community Emphasizes the various skills that IROs must possess in order to do their jobs successfully, such as marketing and securities law compliance Includes end-of-chapter review questions, activities, and lists of key terms  Investor Relations and Financial Communication: Creating Value Through Trust and Understanding  is the perfect textbook for both professional development training programs and undergraduate and graduate courses in investor relations, and is required reading for all those working in investor relations, particularly early-career professionals.

Оглавление

Alexander V. Laskin. Investor Relations and Financial Communication

Investor Relations and Financial Communication. Creating Value Through Trust and Understanding

Contents

List of Illustrations

List of Tables

Guide

Pages

1 Introduction to Investor Relations and Financial Communication. Definition

History

Communication Era

Financial Era

Synergy Era

Key Terms

Questions and Activities

2 Investor Relations and Financial Communication Industry. Investor Relations Officers

Other Jobs in Financial Communication

Investor Relations and Financial Communication Agencies

Education and Training

Ethics and Professionalism

Finding a Job in Investor Relations and Financial Communication

Key Terms

Discussion Questions and Activities

3 Stockholders and Stakeholders

Investors: Stockholders

Retail Shareholders

Institutional Investors

Traders

Portfolio Builders

Shareowners

Common vs. Preferred Stock

Value vs. Growth Investors

Investors: Debt Holders

Sell-side

Internal Stakeholders

Other Stakeholders

Key Terms

Discussion Questions and Activities

4 Communicating Financial Information

Income Statement

Balance Sheet

Cash Flow Statement

Statement of Stockholders’ Equity

Financial Analysis

GAAP and Non-GAAP Financial Disclosure

Key Terms

Discussion Questions and Activities

5 Communicating Nonfinancial Information

Defining Nonfinancial Information

Lack of Nonfinancial Disclosure

Future of Nonfinancial Information

Key Terms

Discussion Questions and Activities

6 Legal and Regulatory Environment of Investor Relations and Financial Communication

Securities Act of 1933

Securities Exchange Act of 1934

True Indenture Act of 1939

Investment Company Act of 1940

Investment Adviser Act of 1940

Regulation FD

Sarbanes–Oxley Act of 2002

Dodd–Frank Act of 2010

Jumpstart Our Business Startups Act

Key Terms

Discussion Questions and Activities

7 Corporate Governance, Environmental Sustainability, and Social Responsibility

Environmental Sustainability

Social Responsibility

Corporate Governance

Key Terms

Discussion Questions and Activities

8 Shareholder Activism and Crisis Management

Reasons for Activism

Proxy Battles

Retail Investors

Crisis Management

Hostile Takeover

Bankruptcy

Key Terms

Discussion Questions and Activities

9 Main Activities and Publications in Investor Relations and Financial Communication

Disclosure

Paid Media, Earned Media, Shared Media, and Owned Media

Earnings and Earning Calls

Annual Shareholder Meetings and Proxy Statements

Responsiveness to Investors, One-on-One Meetings, and Relationship Building

Sell-side and Research Coverage

Roadshows, Investor Days, Conferences, and Other Special Events

Internal Activities

Targeting

Key Terms

Discussion Questions and Activities

10 Going Public and Going Private

Initial Public Offering

Follow-on Public Offering

American Depositary Receipt

Direct Listing

Private Listing

Special Purpose Acquisition Company

Going Private

Key Terms

Discussion Questions and Activities

11 Measurement and Evaluation of Investor Relations and Financial Communication

Levels of Evaluation: the Model

The Application of the Levels of Evaluation. IRO/Agency Level: Output

Intermediary/Media Level: Outreach

Target Audience Level: Outcome

Organizational Results Level: Outgrowth

Industry Level: Outperform

Strategic Goal

Key Words

Discussion Questions and Activities

12 Globalization of the Financial Markets and Regional Distinctions. Investments Know No Boundaries

Depositary Receipts: Global Depositary Receipts, American Depositary Receipts, and Euro-denominated Depositary Receipts

Regional Variations in Investor Relations and Financial Communication

Sidebar 12.1. Investor relations in Russia: the case of Bank Vozrozhdenie

Key Terms

Discussion Questions and Activities

13 The Future of Investor Relations and Financial Communication. COVID-19 Accelerates Online Processes

Technological Innovations

Retail Investors

New Investment Vehicles

Growing Regulations

Cybersecurity

Growing Importance of ESG

Sidebar 13.1. Growing importance of professional associations: the case of NIRI

Post-Information Age

Shareholder Activism

Key Terms

Discussion Questions and Activities

Bibliography

Index

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Отрывок из книги

Alexander V. Laskin,

Quinnipiac University Hamden, Connecticut

.....

Another problem was the track record. The market was growing in leaps and bounds after World War II and shareholders (especially individual shareholders) expected it to continue like this forever. The expectations became too high for the reality to deliver. In other words, “success bred a level of expectations that could not be fulfilled” (Chatlos, 1984, p. 87). The system was destroying itself: the system built on volume of transactions could not handle that volume anymore, and the investors were ready to quit:

Customers were less than happy and did what might have been expected. They walked away. They did not sell their shares. They just walked away. For a system geared to the retail trade – and in many respects it remains so today – it was a devastating blow. The system was geared to volume, couldn’t plan for high volume, and suddenly had very little volume. Again, as could have been expected, broker failures and bankruptcy-avoiding mergers followed. It was a grim sight and the individual shareholder moved further away from the system.

.....

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