The Evaluation of the Communication of the Romanian Listed Companies with the Investors
Author:
Camelia-Daniela HATEGAN
JEL:
D83, G30, M14
DOI:
10.20869/AUDITF/2020/160/027
Keywords:
investor relations; financial communication; performance; governance; evaluation
Abstract:
Investor relations and financial communication are an ongoing challenge for a company`s governance. Good communication and a close relationship with the investors contribute to strengthening the company`s image and confidence of all stakeholders. Research on this topic has identified the requirements underlying the effective communication of companies, namely the existence of a department on investor relations, communication strategy, practices used, the content of the communication and its effects. The purpose of the paper is to make an assessment of the level of communication registered by the Romanian companies listed on the main market at the Bucharest Stock Exchange, starting from the assessment made by the Romanian Investor Relations Association in correlation with factors that may influence communication, respectively the trading category in which the company is listed, profitability, dividends paid, form of ownership of the majority shareholder, existence of non-financial reporting. From the proposed econometric model, it resulted that all the variables tested influence the level of communication, of which the trading category and the existence of non-financial reporting are most closely related. The level of communication with investors of Romanian companies is still low, but it has an upward evolution over time, so that at the next evaluation it will be possible to ascertain the amplitude of this evolution and other influencing factors will be identified.
Abstract(212KB)
Article(346KB)