The value of (private) investor relations during the COVID-19 crisis

We investigate the value of investor relations (IR) and find firms with strong IR to experience between five and eight percentage points higher stock returns than those with weak IR during the COVID-19 crisis. Firms with better-quality IR are also associated with higher investor loyalty and appear t...

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Detalles Bibliográficos
Autores principales: Neukirchen, Daniel, Engelhardt, Nils, Krause, Miguel, Posch, Peter N.
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier B.V. 2023
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9758879/
https://www.ncbi.nlm.nih.gov/pubmed/36568843
http://dx.doi.org/10.1016/j.jbankfin.2022.106450
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author Neukirchen, Daniel
Engelhardt, Nils
Krause, Miguel
Posch, Peter N.
author_facet Neukirchen, Daniel
Engelhardt, Nils
Krause, Miguel
Posch, Peter N.
author_sort Neukirchen, Daniel
collection PubMed
description We investigate the value of investor relations (IR) and find firms with strong IR to experience between five and eight percentage points higher stock returns than those with weak IR during the COVID-19 crisis. Firms with better-quality IR are also associated with higher investor loyalty and appear to have attracted significantly more institutional investors over the crisis period. This suggests that a firm’s IR contributes to value generation by enhancing credibility with shareholders and by diversifying its shareholder base. After decomposing IR into public and private transmission channels, we find the private IR function to be the main driver of our results.
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spelling pubmed-97588792022-12-19 The value of (private) investor relations during the COVID-19 crisis Neukirchen, Daniel Engelhardt, Nils Krause, Miguel Posch, Peter N. J Bank Financ Article We investigate the value of investor relations (IR) and find firms with strong IR to experience between five and eight percentage points higher stock returns than those with weak IR during the COVID-19 crisis. Firms with better-quality IR are also associated with higher investor loyalty and appear to have attracted significantly more institutional investors over the crisis period. This suggests that a firm’s IR contributes to value generation by enhancing credibility with shareholders and by diversifying its shareholder base. After decomposing IR into public and private transmission channels, we find the private IR function to be the main driver of our results. Elsevier B.V. 2023-02 2022-02-27 /pmc/articles/PMC9758879/ /pubmed/36568843 http://dx.doi.org/10.1016/j.jbankfin.2022.106450 Text en © 2022 Elsevier B.V. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Neukirchen, Daniel
Engelhardt, Nils
Krause, Miguel
Posch, Peter N.
The value of (private) investor relations during the COVID-19 crisis
title The value of (private) investor relations during the COVID-19 crisis
title_full The value of (private) investor relations during the COVID-19 crisis
title_fullStr The value of (private) investor relations during the COVID-19 crisis
title_full_unstemmed The value of (private) investor relations during the COVID-19 crisis
title_short The value of (private) investor relations during the COVID-19 crisis
title_sort value of (private) investor relations during the covid-19 crisis
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9758879/
https://www.ncbi.nlm.nih.gov/pubmed/36568843
http://dx.doi.org/10.1016/j.jbankfin.2022.106450
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