Now that we are at the beginning of a new year is the time to go through last year’s IR activities and analyze what went well and what perhaps did not go well. The next step in the process is to reconcile this against the targets set in last year’s IR plan in order to develop and improve the plan for 2011. Since much of the IR work is reactive to its nature depending on both external and internal events, it is imperative to plan the activities aiming at the investor community and set both long and short term goals, combined with a plan to achieve those objectives.
Unfortunately, many companies tend to equate the IR plan with the financial calendar and have no other objective than to satisfy the regulated requirements. This does not create a good breeding ground for building shareholder value over the long term.
Is it worth it?
With a thorough, consistent and transparent IR work over time, companies can achieve increased liquidity and reduced volatility in the shares, an optimal and well-diversified shareholder structure, reduced cost of capital, increased shareholder value and higher multiples relative to competitors and/or other appropriate comparable companies. To achieve these goals more is required than just reactive work. A well-conceived and firmly established IR plan is the first step toward creating true shareholder value.
Isn’t this something that should be in the interest of all corporations?
/Mikael Zillén, @mikaelzillen
Founder & Digital Specialist
+46 762 13 00 40 | mikael.zillen (@) boxcomm.se
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