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The role of the mass media in investor relations

Aeron Davis (City University, London, UK)

Journal of Communication Management

ISSN: 1363-254X

Article publication date: 1 January 2006

3350

Abstract

Purpose

The purpose of this paper is to observe the investor relations (IR) process from the perspective of media sociologists.

Design/methodology/approach

The focus of the piece is the changing role of the financial news media in equities markets. It is based on two lengthy periods of research into the part played by communications in investment in the London Stock Exchange. The research looked at three sets of participants and three stages of the communications process: financial public/IR and the IR function, financial journalists and news reporting, and professional investors and their evaluation processes. Much of the work involved semi‐structured interviews with over 100 high‐level participants.

Findings

The findings suggest a slow decline in the importance of financial news media in the investment process. However, financial news also continues to play a significant role in trading in the city and can, at times, still have a powerful impact on investment patterns. Consequently, all sides – companies, IR practitioners, analysts and investment managers – continue to target and consume it.

Originality/value

The paper introduces readers to theories and research methods used in the adjacent research field of media and communications.

Keywords

Citation

Davis, A. (2006), "The role of the mass media in investor relations", Journal of Communication Management, Vol. 10 No. 1, pp. 7-17. https://doi.org/10.1108/13632540610646337

Publisher

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Emerald Group Publishing Limited

Copyright © 2006, Emerald Group Publishing Limited

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