We Analyse Corporate and Investor Relations Communications

We have a structured process of analysing a listed company’s corporate and investor relations communications context. Context is everything, so we consider a 3-page list of key issues before suggesting solutions to our clients. Two key issues arise is what you are currently doing enough, or too much? What does the regulator say?

Flexible Regulatory Framework in Online Investor Relations

The regulatory framework and communication governance practices in our markets are quite flexible (the polite way of saying that there’s little or no regulation governing detailed online investor relations practices). This means that you can have a relatively passive online presence without facing any regulatory consequences.

Challenges Faced by Some Companies

It may be that you are unable to consider anything other than a passive website presence due to a lack of resources. Only a few companies have a world-class online presence when it comes to investor communications practices. Those that are dual-listed on international exchanges are typically the most progressive since they have to answer to international audiences. Establishing context enables an appropriate solution to be structured. How?

Key Factors in Determining Context

• fake news frequency
• market capitalisation
• liquidity
• number of shareholders
• dual listing
• nature of the industry (sensitive, retail-based)
• commitment to stakeholder engagement under sustainability initiatives

The Importance of Establishing an Online Presence

Listed companies should establish a basic online presence irrespective of their level of commitment or context. For companies listed on AIM (London Stock Exchange), Rule 26 outlines minimum disclosure obligations on a corporate website. In contrast, there are no similar requirements in African markets, which means that online IR initiatives are entirely voluntary. We have written the minimum standards of online investor relations to help companies.

ROI in Progressive Online Practices

The ROI from investing in progressive online practices for listed companies depends on context, and sustainability reporting frameworks (the GRI Principles) are providing greater impetus to companies’ stakeholder engagement. Equity investors are a key part, so expect to see improvements in the IR space over time. Where does your company stand?