The Evaluation of the Communication of the Romanian Listed Companies with the Investors

Investor relations and financial communication are an ongoing challenge for a company`s governance. Good communication and a close relationship with the investors contribute to strengthening the company`s image and confidence of all stakeholders. Research on this topic has identified the requirement...

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Format: Article
Language:English
Published: Chamber of Financial Auditors of Romania 2020-10-01
Series:Audit Financiar
Subjects:
Online Access: http://revista.cafr.ro/temp/Article_9655.pdf
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collection DOAJ
description Investor relations and financial communication are an ongoing challenge for a company`s governance. Good communication and a close relationship with the investors contribute to strengthening the company`s image and confidence of all stakeholders. Research on this topic has identified the requirements underlying the effective communication of companies, namely the existence of a department on investor relations, communication strategy, practices used, the content of the communication and its effects. The purpose of the paper is to make an assessment of the level of communication registered by the Romanian companies listed on the main market at the Bucharest Stock Exchange, starting from the assessment made by the Romanian Investor Relations Association in correlation with factors that may influence communication, respectively the trading category in which the company is listed, profitability, dividends paid, form of ownership of the majority shareholder, existence of non-financial reporting. From the proposed econometric model, it resulted that all the variables tested influence the level of communication, of which the trading category and the existence of non-financial reporting are most closely related. The level of communication with investors of Romanian companies is still low, but it has an upward evolution over time, so that at the next evaluation it will be possible to ascertain the amplitude of this evolution and other influencing factors will be identified.
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spelling doaj.art-86235a69d1f2477594f634c085c710482022-12-21T19:10:30ZengChamber of Financial Auditors of RomaniaAudit Financiar1844-88012020-10-011816080181110.20869/AUDITF/2020/160/8019655The Evaluation of the Communication of the Romanian Listed Companies with the InvestorsInvestor relations and financial communication are an ongoing challenge for a company`s governance. Good communication and a close relationship with the investors contribute to strengthening the company`s image and confidence of all stakeholders. Research on this topic has identified the requirements underlying the effective communication of companies, namely the existence of a department on investor relations, communication strategy, practices used, the content of the communication and its effects. The purpose of the paper is to make an assessment of the level of communication registered by the Romanian companies listed on the main market at the Bucharest Stock Exchange, starting from the assessment made by the Romanian Investor Relations Association in correlation with factors that may influence communication, respectively the trading category in which the company is listed, profitability, dividends paid, form of ownership of the majority shareholder, existence of non-financial reporting. From the proposed econometric model, it resulted that all the variables tested influence the level of communication, of which the trading category and the existence of non-financial reporting are most closely related. The level of communication with investors of Romanian companies is still low, but it has an upward evolution over time, so that at the next evaluation it will be possible to ascertain the amplitude of this evolution and other influencing factors will be identified. http://revista.cafr.ro/temp/Article_9655.pdf investor relations; financial communication; performance; governance; evaluation
spellingShingle The Evaluation of the Communication of the Romanian Listed Companies with the Investors
Audit Financiar
investor relations; financial communication; performance; governance; evaluation
title The Evaluation of the Communication of the Romanian Listed Companies with the Investors
title_full The Evaluation of the Communication of the Romanian Listed Companies with the Investors
title_fullStr The Evaluation of the Communication of the Romanian Listed Companies with the Investors
title_full_unstemmed The Evaluation of the Communication of the Romanian Listed Companies with the Investors
title_short The Evaluation of the Communication of the Romanian Listed Companies with the Investors
title_sort evaluation of the communication of the romanian listed companies with the investors
topic investor relations; financial communication; performance; governance; evaluation
url http://revista.cafr.ro/temp/Article_9655.pdf