How should companies communicate to investors and analysts? This question has gained increasing importance in the wake of the recent accounting scandals, and in light of the introduction of the Sarbanes-Oxley Act and other new rules and regulations for the reporting of financial information.
While analysts and many investors are experts in their field, they too are subject to perceptual biases and restrictions in information processing capacity. Therefore, communicating to them in the “right way” is of vital importance. Our research focuses on which ways of communicating financial information are most effective. Research by CCC members on investor relations will be published in a forthcoming issue of Long Range Planning.