CHAPTER 6

Principles of Corporate Reputation and Investor Communication

Corporate Reputation

Investor relations (IR) is an important component of the reputational management of a listed corporation. As Figure 6.1 shows, reputational management has three essential elements: firm behavior (including financial performance), firm communications, and the communication that other parties have about the firm. This model neatly represents the three ways that the financial community learns about firms: by engaging with firm behavior directly through financial reports, by listening to what the firm says about its own performance, and by engaging with intermediaries who have opinions on firm performance.

Figure 6.1 The reputational model

The three elements ...

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