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The role of educational diversity in investor relations

Arvid O.I. Hoffmann (School of Business and Economics, Maastricht University, Maastricht, The Netherlands)
Aida Tutic (School of Business and Economics, Maastricht University, Maastricht, The Netherlands)
Simone Wies (School of Business and Economics, Maastricht University, Maastricht, The Netherlands)

Corporate Communications: An International Journal

ISSN: 1356-3289

Article publication date: 11 October 2011

Abstract

Purpose

The purpose of this paper is to show the role of educational diversity in improving investor relations (IR) quality and examine how this impacts the number of shareholder activism incidents a firm encounters.

Design/methodology/approach

The paper reviews literature on marketing, finance, and corporate communications to develop a conceptual framework which is tested using a combination of secondary data and primary data collected through a survey amongst IR professionals working at companies in the Euronext 100 stock index.

Findings

The empirical results support the conceptual framework, showing higher IR quality levels and lower shareholder activism intensity for companies with educationally diverse IR teams. In particular, the presence of marketing and communication experts in IR teams contributes to higher IR quality and lower shareholder activism.

Research limitations/implications

Future research may investigate the robustness of the results with larger and internationally diversified samples and examine how, besides educational diversity, other organizational arrangements through which finance professionals work together with marketing and communication professionals impact IR quality.

Practical implications

The results suggest that to improve their IR quality and minimize shareholder activism, companies should check and when necessary increase the educational diversity of their IR teams.

Originality/value

This is the first paper investigating the role of educational diversity on IR quality and the impact on shareholder activism, developing and testing an innovative conceptual framework that integrates marketing, finance, and corporate communication theory.

Keywords

Citation

Hoffmann, A.O.I., Tutic, A. and Wies, S. (2011), "The role of educational diversity in investor relations", Corporate Communications: An International Journal, Vol. 16 No. 4, pp. 311-327. https://doi.org/10.1108/13563281111186959

Publisher

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Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited