Investor Releations and the Internet - Background, Potential Application and Evidence from the USA, UK and Germany

Posted: 20 Jul 1998

See all articles by Dominic Deller

Dominic Deller

Johan Wolfgang Goethe University

Michael Stubenrath

Johan Wolfgang Goethe University

Christoph Weber

Johan Wolfgang Goethe University

Date Written: February 1998

Abstract

In this paper, the role of the Internet as an instrument for investor relations activities is described and discussed in the context of traditional instruments of investor relations. We show the potential application of the World Wide Web as a communication tool, especially with regard to private shareholders. A catalogue of technology-specific advantages of Internet presence is identified and compared to the characteristics of traditional investor relations activities. It is hypothesised that international differences in shareholder structure and Internet access are reflected in the extent the Internet is used by corporations. In the subsequent empirical study the Internet investor relations activities of US, UK and German corporations are compared. A sample comprising the respective country s relevant stock market 100 index (S&P, FTSE, DAX) is used. The empirical results are confronted with the outlined hypotheses. We find that in the USA, where about half the shares are held by private investors (UK slightly more than twenty and Germany under twenty per cent), and Internet access is comparatively wide spread, investor relations via the Internet is more common and offers more features than in the other two countries.

JEL Classification: M41

Suggested Citation

Deller, Dominic and Stubenrath, Michael and Weber, Christoph, Investor Releations and the Internet - Background, Potential Application and Evidence from the USA, UK and Germany (February 1998). Available at SSRN: https://ssrn.com/abstract=99948

Dominic Deller

Johan Wolfgang Goethe University ( email )

Mertonstrasse 17-25
Frankfurt am Main, D-60325
Germany

Michael Stubenrath

Johan Wolfgang Goethe University ( email )

Senckenberganlage 31
Postfach 111932
60325 Frankfurt am Main
Germany
+49 69 7982 8174 (Phone)
+49 69 7982 3457 (Fax)

Christoph Weber (Contact Author)

Johan Wolfgang Goethe University ( email )

Mertonstrasse 17-25
Frankfurt am Main, D-60325
Germany
+49 69-7982-2380 (Phone)
+49 69-7982-3457 (Fax)

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