Investor Relations: Two-Way Symmetrical Practice

Abstract

Although public relations claims investor relations as one of its specializations, scholars have paid little attention to it and practitioners historically have been divided between finance and public relations. A national survey of 145 members of the National Investor Relations Institute and the Public Relations Society of America's Financial Communications Section tested models and dimensions of practice to build theory. Results show that such investor relations officers predominantly practice the two-way symmetrical model and their work is characterized by the dimensions of symmetrical effects and—to some degree—two-way communication. Practitioners do not differ by their orientation to either finance or corporate communication/public relations. This study is the first to find the predominant practice of the normative model across its sample, thereby refuting long-standing criticism that the symmetrical model is a utopian ideal. The two-way symmetrical model does exist in the real world, and it can be found in the bastion of capitalism—publicly owned corporations in the United States.

Notes

Note. N = 145. Scores are the square roots of responses on a fractionation scale for which respondents were told that 100 is a typical response on all items. Thus, a mean of 10 in this table represents a typical response.