| Intermediaries' Perceptions of Public Companies (2007) | |||||||||||
Abstract | |||||||||||
| The success and the overall value of a corporation are heavily dependent on the financial communitys assessment of that company. Members of the financial community are faced with the challenging task of developing an adequate image or understanding of a company, its state, development and resources. Within the financial community, intermediaries such as journalists and analysts professionally observe, describe and analyze companies. The content produced by intermediaries has a significant impact on how investors perceive companies. Although companies devote a tremendous amount of time and resources to their interaction with investors, their actual control over the content consumed and considered by those investors is very limited. We hold that companies can increase their influence on this content through professional communication to intermediaries on financial markets. Company disclosure can have considerable impact on the perception by intermediaries, if it addresses the intermediaries informational needs and demands. Companies need to gain an understanding about the factors that actually drive their perception by intermediaries. In a comprehensive survey of 66 intermediaries active on the German financial market, we have identified eight such factor categories. We are convinced that to successfully exert any control over the content consumed by the financial community, corporate communications needs to consistently and concisely address these factors. | |||||||||||
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