Managing the Narrative: Investor Relations Officers and Corporate Disclosure

73 Pages Posted: 20 Mar 2017 Last revised: 24 Apr 2017

Lawrence D. Brown

Temple University - Department of Accounting

Andrew C. Call

Arizona State University (ASU) - School of Accountancy

Michael B. Clement

University of Texas at Austin - Department of Accounting

Nathan Y. Sharp

Texas A&M University - Department of Accounting

Date Written: March 1, 2017

Abstract

Investor relations officers (IROs) play a central role in corporate communications with Wall Street. We survey 610 investor relations officers at publicly traded U.S. companies and conduct 14 follow-up interviews to gain insights into the nature of their interactions with sell-side analysts and institutional investors, and to deepen our understanding of the role of investor relations officers in corporate disclosure events. We find that public earnings conference calls are the most important venue for management to convey their company’s message to institutional investors, and that preparing for and managing these calls are the most important determinants of IRO job performance. IROs indicate that private phone calls are more important than 10-K/10-Q reports, on-site visits, and management guidance for conveying their company’s message, and more than 80% of IROs report that they conduct private “call-backs” with sell-side analysts and institutional investors following public earnings conference calls. We explore numerous topics that IROs are uniquely suited to address, and we provide insights into the investor relations, analyst, institutional investor, and disclosure literatures.

Keywords: investor relations, investor relations officers, sell-side analysts, institutional investors, disclosure

JEL Classification: G10, G23, G24, M41, M45

Suggested Citation

Brown, Lawrence D. and Call, Andrew C. and Clement, Michael B. and Sharp, Nathan Y., Managing the Narrative: Investor Relations Officers and Corporate Disclosure (March 1, 2017). Fox School of Business Research Paper No. 17-015. Available at SSRN: https://ssrn.com/abstract=2934937

Lawrence D. Brown

Temple University - Department of Accounting ( email )

Philadelphia, PA 19122
United States

Andrew C. Call

Arizona State University (ASU) - School of Accountancy ( email )

Tempe, AZ 85287
United States

Michael B. Clement (Contact Author)

University of Texas at Austin - Department of Accounting ( email )

2110 Speedway, Stop B6400
Austin, TX 78712
United States
512-471-0332 (Phone)
512-471-3904 (Fax)

Nathan Y. Sharp

Texas A&M University - Department of Accounting ( email )

4353 TAMU
College Station, TX 77843-4353
United States
979-845-0338 (Phone)

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