Investor Relations from the Perspective of CEOs

Abstract

This study answers the call for research exploring the relevance of an established public relations theory, relationship management, to investor relations. Having emerged during the 1950s, investor relations is a relatively new field that integrates the disciplines of communication, marketing, finance, and compliance with securities laws. Through qualitative interviews, the study provides insight into the relationship management function of investor relations from the perspectives of those whom investors ultimately hold accountable for a public company’s performance—CEOs. The dominant theme emerging from the study is the constant challenge CEOs of public companies face as they engage in relationships with investors, primarily due to the constraining effects of regulatory requirements. Although the study generally confirmed that the interviewees value Hon and Grunig’s qualities of trust, satisfaction, control mutuality and commitment in relationships with investors, CEOs’ most frequently discussed relationship quality that they work to achieve is trust.