Investor relations: a comprehensive overview
Tóm tắt
This paper reviews the existing literature on investor relations. The purpose of investor relations
is consistently to provide market participants with decision-relevant information as a result of either
mandatory or voluntary information-disclosure policies. A causation chain between investor relations
and stock prices is established through the liquidity hypothesis with respect to the depth of analyst coverage.
Though a positive association is documented, it is not perfectly linear. After presenting the taxonomy
of corporate disclosures, we elaborate on how well the full-disclosure and the discretionary disclosure
models fit into reality. In addition, the extant theoretical and empirical literature reports that investor
relations policies vary over time, across firms and jurisdictions.
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