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Article
Publication date: 1 April 2006

A. Heldenbergh, C. Scoubeau, L. Arnone and M. Croquet

To emphasise the important role of financial communication strategies implemented by companies during critical public share issues and identify their main characteristics.

Abstract

Purpose

To emphasise the important role of financial communication strategies implemented by companies during critical public share issues and identify their main characteristics.

Design/methodology/approach

A review of the available literature on the subject (1991‐2003) describes the risks brought about by public share issues, the main roles of the financial communication strategy and its targets. A qualitative investigation conducted in Belgian bank companies (by interviews) details the different financial communication strategies implemented during mergers and acquisitions.

Findings

Financial communication is not only concerned with financial figures and data, but has also a specific role in building the company's image, reputation and confidence. This is particularly true in case of mergers and acquisitions since these events can strongly affect the company's identity. Internal as well as external communications have to be considered. Some managerial implications are proposed.

Research limitations/implications

The investigation was conducted in Belgian bank companies, which are not necessarily representative of the practices in other countries. Quantitative studies should be conducted in order to isolate impact of financial communication on mergers and acquisitions success.

Practical implications

An interesting approach of financial communication and a description of its role in reducing the risks brought about during critical public share issues such as mergers and acquisitions.

Originality/value

Financial communication is less developed than the other types of communications, but is quite so important. This paper contributes to a better understanding of the role of the financial communication as part of the global communication strategy.

Details

Corporate Communications: An International Journal, vol. 11 no. 2
Type: Research Article
ISSN: 1356-3289

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Article
Publication date: 1 September 2005

Anne Heldenbergh and Chantal Scoubeau

The first public share offer represents a crucial step in the life of a company. When the firm places shares linked to its business activity on sale in the financial

Abstract

Purpose

The first public share offer represents a crucial step in the life of a company. When the firm places shares linked to its business activity on sale in the financial markets, it is taking a strategic decision of major importance because this is going to involve shareholders who will subsequently become real partners in the organisation. This paper attempts to determine the place of financial communication in the company with regard to its general situation.

Design/methodology/approach

Analyses the key role played by the financial communicator and the organisation he represents in determining the type of communication needed so as to prepare for the first public share issue. Examines the initial results of a quantitative analysis (carried out by means of a questionnaire) of the importance attached to financial communication by managers of firms present on the Belgian financial market.

Findings

Financial communication is a form of communication that is still growing. The appearance of new technological tools seems favourable to this development. It seems that the information obtained by means of the questionnaire confirms not only the theoretical approach concerning the various targets, but also the role played by some specific players such as the press. It also seems that the development of the internet allows one to devise elaborate new approaches to the question so that one can contact a lot of people (more often with the same message) everywhere in the world and at a price which is reasonable. It is also interesting to confirm the attention given to specific events in the financial life of a firm. As a matter of fact, the budget allocated to financial communication is almost doubled in the case of a public offering.

Research limitations/implications

The initial results are not representative enough to allow the drawing of conclusions about the global population of firms concerned.

Originality/value

The present paper can be envisaged as a pilot study insofar as it allows one to highlight certain development axes which could be interesting, such as the impact of new technologies on financial communication or the influence of the various stakeholders on a share issue and in its future enhanced value on the market.

Details

Corporate Communications: An International Journal, vol. 10 no. 3
Type: Research Article
ISSN: 1356-3289

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Article
Publication date: 2 February 2015

Suk-Chong Tong

The purpose of this paper is to propose a model of financial communication to investigate the process of communicating risk signals between listed companies and their…

Abstract

Purpose

The purpose of this paper is to propose a model of financial communication to investigate the process of communicating risk signals between listed companies and their individual retail investors in initial public offerings (IPOs).

Design/methodology/approach

A survey study on individual IPO investors (n=212) in the Hong Kong Stock Exchange was conducted to examine how risk estimates of individual retail investors were affected by three factors of financial communication, namely organizational trust, organizational reputation and investors’ trust in the media specialists. Structural equation modeling analysis was conducted.

Findings

Respondents’ perceived risks of below-target returns and perceived risks of losses of principals were significantly affected by their perceived market risks. Respondents relied significantly on organizational trust to estimate their amounts of target returns and mitigate their perceived risks of losses of principals. Organizational reputation, which could be possibly reinforced by respondents’ trust in the media specialists, could enhance organizational trust.

Practical implications

Corporate communications practitioners should pay attention to the effect of perceived market risk on risk estimate. As organizational trust is a significant precondition of risk taking in IPOs, practitioners should rethink the effectiveness of financial communication in which organizational trust, organizational reputation and investors’ trust in the media specialists are interrelated.

Originality/value

There is a lack of research in financial communication from the organization-stakeholders perspective. This paper conceptualizes financial communication and provides insights to both scholars and practitioners in corporate communications on how significant factors of financial communication affect risk estimate in the financial market.

Details

Corporate Communications: An International Journal, vol. 20 no. 1
Type: Research Article
ISSN: 1356-3289

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Article
Publication date: 14 May 2019

John Holland

Corporate financial communications concern public and private disclosure (Holland, 2005). This paper aims to explain how banks developed financial communications and how…

Abstract

Purpose

Corporate financial communications concern public and private disclosure (Holland, 2005). This paper aims to explain how banks developed financial communications and how problems emerged in the global financial crisis. It explores policy responses.

Design/methodology/approach

Bank cases reveal construction and destruction of the social, knowledge and economic world of financial communications over two periods.

Findings

In the 1990s, learning about financial communications by a “dominant coalition” (Cyert, March, 1963) in bank top management was stimulated by gradual change. The management learnt how to accumulate social and cultural capital and developed “habitus” for disclosure (Bourdieu, 1986). From 2000, rapid change and secrecy factors accelerated bank internalisation of shareholder wealth maximising values, turning “habitus” in “market for information” (MFI) (Barker, 1998) into a “psychic prison” (Morgan,1986), creating riskier bank cultures (Schein, 2004) and constraining learning.

Research limitations/implications

The paper introduces sociological concepts to banking research and financial disclosures to increase the understanding about financial information and bank culture and about how regulation can avoid crises. Limitations reflect the small number of banks and range of qualitative data.

Practical implications

Regulators will have to make visible the change processes, new contexts and knowledge and connections to bank risk and performance through improved regulator action and bank public disclosure.

Social Implications

“Masking” and rituals (Andon and Free, 2012) restricted bank disclosure and weakened governance and market pressures on banks. These factors mediated bank failure and survival in 2008, as “psychic prisons” “fell apart”. Bank and MFI agents experienced a “cosmology episode” (Weick, 1988). Financial communications structures failed but were reconstructed by regulators.

Originality/value

The paper shows how citizens require transparency and contested accountability to democratise finance capitalism. Otherwise, problems will recur.

Details

Qualitative Research in Financial Markets, vol. 11 no. 1
Type: Research Article
ISSN: 1755-4179

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Article
Publication date: 1 April 2003

Georgios I. Zekos

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination…

Abstract

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

Details

Managerial Law, vol. 45 no. 1/2
Type: Research Article
ISSN: 0309-0558

Keywords

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Article
Publication date: 1 October 2000

A. Lievens and R.K. Moenaert

Reports on research concerning the role and nature of communication during the innovation process of new financial services. A causal framework has been developed on the…

Abstract

Reports on research concerning the role and nature of communication during the innovation process of new financial services. A causal framework has been developed on the antecedent role of communication in financial service innovation and its impact on success. Project team communication is conceptualized by: intra‐project communication (communication between project team members); and extra‐project communication (boundary‐spanning communication). Examines the effectiveness of these communication flows from an information processing perspective and assesses the amount of uncertainty reduced about customers, competitors, technologies and resources. Also assesses the impact of the reduction of uncertainty on new financial service performance. In view of the context, i.e. financial service innovations, we included the specific characteristics of services (intangibility, inseparability of production and consumption, heterogeneity and perishability) into our theory and research design. Finally, the theoretical and managerial implications are discussed.

Details

European Journal of Marketing, vol. 34 no. 9/10
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 5 September 2020

Kumaran Rajandran

Financial communication produces various texts, among which are earnings videos. The videos employ language and image in multimodal discourses to convey specific social…

Abstract

Purpose

Financial communication produces various texts, among which are earnings videos. The videos employ language and image in multimodal discourses to convey specific social meanings about corporate performance. The purpose of this paper is to select earnings videos and study their incorporated genres, styles and discourses.

Design/methodology/approach

Interdiscursivity permits hybridity because it mixes the choice of genres, styles or discourses. An interdiscursive analysis is conducted on earnings videos in English, French and Spanish from corporations in the global finance industry. It involved three sequential stages: (1) to detect the discourses, (2) to name the discourses and (3) to consider the function of the discourses.

Findings

Earnings videos are hybrid because interview and presentation genres, formal and casual styles and the discourses of financial accounting, strategic management and public relations are encountered. The genres, styles and discourses are interwoven to create an interdiscursive mix, which constructs earnings through a (pseudo)personal social relation and easified discourses. The multimodal discourses convey robust corporate performance in an interim, and their use is symptomatic of marketization. Corporations may “market” their performance to seem like a worthwhile investment to persuade (potential) investors.

Originality/value

The paper enriches existing research in financial communication because it studies how multimodal discourses in earnings videos are tailored for marketization. The videos have not been analyzed, and their analysis complements earlier studies on other financial communication texts. The analysis examines discourses through language and image features, whose co-deployment conveys meaning about corporations.

Details

Corporate Communications: An International Journal, vol. 26 no. 2
Type: Research Article
ISSN: 1356-3289

Keywords

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Article
Publication date: 1 March 2004

Richard R. Dolphin

This paper reports an empirical study conducted in British organisations focussing on the role of investor relations as part of a co‐ordinated marketing communications

Abstract

This paper reports an empirical study conducted in British organisations focussing on the role of investor relations as part of a co‐ordinated marketing communications strategy. Consequently this study considers the greatly neglected research area of the management of relationships between national and international organisations and both investors and those others who might consider themselves significant financial stakeholders. It examines the organisational role of investor relations within a co‐ordinated communication programme and suggests that communication with financial stakeholders has a significant role to play as part of a developed corporate communication strategy.

Details

Corporate Communications: An International Journal, vol. 9 no. 1
Type: Research Article
ISSN: 1356-3289

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Article
Publication date: 27 April 2012

Susanne Arvidsson

The purpose of the paper is to analyse the views of management teams regarding different aspects related to the corporate communication process with financial analysts…

Abstract

Purpose

The purpose of the paper is to analyse the views of management teams regarding different aspects related to the corporate communication process with financial analysts. The focus is the following aspects: incentive for communication; sources of information; and frequency and initiator of communication.

Design/methodology/approach

The data is based on a comprehensive questionnaire survey addressed to investor‐relation managers (IRMs) at the largest companies listed on the Stockholm Stock Exchange.

Findings

The study confirms an increasing frequency of corporate communication, a short‐term orientation, more demand for direct contacts, and embracing of new communication tools. The findings reveal that quite a few challenges lie ahead in shaping the efficient corporate communication process of tomorrow. The most critical relate to the risk of opportunity costs due to lost management opportunities caused by increased demand from stock‐market actors for communication time with management teams and to perceived risks with, for example, increased accessibility, information leakage and misinterpretations due to the introduction of new electronic communication tools.

Practical implications

Given the delicate nature of the above challenges, they need to be taken on promptly by management teams, policy makers and financial market regulators if the corporate communication process is to function efficiently and facilitate decreased information asymmetry and uphold an efficient allocation of resources on the stock market.

Originality/value

The study is motivated by the changed conditions for corporate communication (e.g. increased globalisation, new electronic ways to communicate, importance of non‐financial drivers), paired with a lack of recent studies. Furthermore, herein not only one aspect is being analysed but several, and from a management‐team perspective, which is a perspective often neglected for the sophisticated‐user perspective.

Details

Corporate Communications: An International Journal, vol. 17 no. 2
Type: Research Article
ISSN: 1356-3289

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Book part
Publication date: 26 November 2020

Andrea Lučić, Dajana Barbić and Dijana Bojčeta Markoja

Educating audiences towards positive transformational change and targeted towards the improvement of quality of life in the field of strategic communication is almost a…

Abstract

Educating audiences towards positive transformational change and targeted towards the improvement of quality of life in the field of strategic communication is almost a fairy tale. The controversy surrounding the Croatian pension fund system and its reform, low pensions, the negative demographic trends and low levels of financial and retirement literacy has put pension funds in a constant position of dealing with crisis communication strategies. At the same time, strategic communication in the industry is very traditional and is usually unnoticed. Taking a step back from a traditional goal of customer acquisitions, Croatian pension funds have pooled their efforts within the Association of Pension Funds and Pension Fund Insurance Companies in order to act as a unified group when dealing with joint interest. Recognizing the need of society to raise awareness of personal engagement in the process of retirement savings, they have decided to use education as a tool of strategic communication. This chapter has the purpose of showing how purposeful content-based valuable information can be created with the aim of influencing attitudes and behaviours in the field of personal and pension savings. During the project a quantitative study was conducted in order to investigate the effectiveness of the education on the attitudes and knowledge related to pension fund savings. The results of the quasi experiment indicate that the education has increased respondents' knowledge and positive attitudes towards retirement savings.

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