Abstract

http://ssrn.com/abstract=1102644
 
 

Citations (3)



 


 



The Impact of Effective Investor Relations on Market Value


Vineet Agarwal


Cranfield University - School of Management

Angel Liao


affiliation not provided to SSRN

Richard Taffler


Manchester Business School

Elly Nash


affiliation not provided to SSRN

March 4, 2008


Abstract:     
In this first study to test formally the market value of investor relations (IR) activity, we employ the annual US Investor Relations Magazine Investor Relations Awards from 2000 to 2002 to proxy for the quality of firm investor relations. We find firms perceived to have the most effective IR strategies earn superior abnormal returns, both before and after the nominations. This shows that while the nominations themselves may be influenced by past performance to some extent, they are nonetheless also associated with subsequent positive abnormal returns. We also find that not surprisingly, higher analyst following is associated with more nominations suggesting analysts tend to favour the stocks they follow. Consistent with effective IR leading to lower information risk, liquidity of nominated firms increases in the year subsequent to the nominations. Overall, our evidence is consistent with effective IR successfully reducing risks associated with high information asymmetry, as predicted by information risk and agency theories.

Number of Pages in PDF File: 25

Keywords: investor relations, stock liquidity, asymmetric information

JEL Classification: G14, G19, G29

working papers series


Download This Paper

Date posted: March 9, 2008  

Suggested Citation

Agarwal, Vineet and Liao, Angel and Taffler, Richard and Nash, Elly, The Impact of Effective Investor Relations on Market Value (March 4, 2008). Available at SSRN: http://ssrn.com/abstract=1102644 or http://dx.doi.org/10.2139/ssrn.1102644

Contact Information

Vineet Agarwal
Cranfield University - School of Management ( email )
Bedfordshire, MK43 0AL
United Kingdom
00 44 (0) 1234 754543 (Phone)
00 44 (0) 1234 752554 (Fax)
Angel Liao
affiliation not provided to SSRN ( email )
Richard J. Taffler (Contact Author)
Manchester Business School ( email )
Crawford House
Oxford Road
Manchester M13 9PL
United Kingdom
Elly Nash
affiliation not provided to SSRN ( email )
Feedback to SSRN


Paper statistics
Abstract Views: 3,659
Downloads: 1,062
Download Rank: 10,064
Citations:  3

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.266 seconds