ACCT304 Article Review: Investor Relations Officers & Disclosure

This presentation provides a critical review of an article focusing on the role of Investor Relations Officers (IROs) in corporate disclosure. The review examines the research methodology employed in the article, which includes surveys and interviews with IROs from U.S. public companies. It highlights the IRO's role in managing corporate communications and balancing internal and external responsibilities. The analysis covers both the positive and negative aspects of the study, including limitations related to the reliance on IRO statements and the lack of detailed perspectives from institutional investors. The presentation concludes by emphasizing the importance of IROs in overseeing corporate disclosure and facilitating communication between companies and investors, recommending a better understanding of institutional investor needs to enhance IRO effectiveness. Desklib provides similar solved assignments and past papers for students.

MANAGING THE NARRATIVE:
INVESTOR RELATIONS OFFICERS
AND CORPORATE DISCLOSURE

INTRODUCTION
A significant role is played by investor relations in
corporate communication with stake holders and they
also assist organization to attain adequate valuation.
Present report emphasizes on role of investor relations
in corporate disclosure made by organizations. In order
to assess the same is detail manner the article has been
discussed in which survey of 610 Investor relation
officers has been assessed relating to U.S. public
companies in order to understand the role in deep
manner.

INVESTOR RELATIONS OFFICER
 Play essential role in managing corporate
communications.
 Basic responsibility of communicate with investment
community.
 Corporate gatekeepers.

RESEARCH METHODOLOGY
The author has emphasized on the ability of investor
relations organization in order to assist small firms to
overcome their lack of visibility. Approximately 11
Investor relations professional are interviewed relating
to small and mid –cap companies. Even consequences
of IR activity has been investigated in order to evaluate
the overall amount of IR activity. Lastly archival
approach has been followed in order to ascertain
outcome of robust Investor Relation program.

RESEARCH DESIGN
 Ascertaining subject.
 Framing and proving survey instrument.
 Interview
 Sectional Analysis.

SUMMARY: Role of investor relation
officer
 They balance inside and outside communication
responsibilities.
 Uniquely qualified in order to provides valuable
insights.

Influence of IROs on corporate disclosure

Assessment of influence of CFO and IRO
on corporate disclosure

Public conference call

CRITICAL ANALYSIS (NEGATIVE ASPECTS)
 Results or conclusion of the study are dependent
on the statement of IRO which can be truth as well
as false.
 Making judgements only on the basis of personal
judgement which has been followed in present
study is not appropriate manner of proving a
statement.
 Point of view of institutional investors has not been
provided in detail manner

LIMITATIONS AND CAVEATS
 Concern relating to internal validity of response
provided during survey.
 Limitation relating to influence of IRO contrary
to impact of CFO on disclosures.

Continue.. Necessity of conveying message to institutional
investors