Financial communication has been defined by Piñuel (1997, p. 149) as “the set of communication strategies (…) that a company or institution carries out to address either a specific audience (called the financial sector, made up of investors –real and potential- Similarly, and finance professionals –financial analysts, specialized journalists, intermediary agents, etc.), either to a non-specific public willing to voluntarily contribute money to provide funds for the organization ”. However, the current development requirements of greater access to information and corporate transparency today create significant challenges
Introduction
Financial Communications
Financial communications are those communication actions, whatever the techniques or tools used, directed and directed from entities and companies of the public and private sectors, with the aim of creating a link between the company and the financial community. This financial community is determined by the actors that are involved in the finances of the organization, which we recently addressed. However, the current development requirements of greater access to information and corporate transparency
Until very recently, financial communication was treated as a confidential matter since it was thought that outsiders did not have to know the results and financial accounts of organizations. Similarly, The financial community: bankers, brokers, investment advisers, securities analysts, and directors of funds, insurance companies, etc.
However, the current development requirements of greater access to information and corporate transparency today create significant challenges for all those companies that work with investors and shareholders.
Those in charge of carrying out the relations with the investors of a company, have a vital role in the development of the same, mainly their function lies in communicating more effectively with the investment community.
Denis Wilcox develops that those who carry out relations with investors “are specialists in the matter. In other words,In large companies they can function as an independent unit, and in smaller companies, they can be part of the public relations department “
Tools:
memory and balance
annual meeting (meeting of shareholders)
brochures and publications
financial advertising
teleconferences
newsletters
conclusion
It is the relationship that the company establishes with its investing public and with the financial community to be able to inform obtaining strategic opportunities. In addition, That is, they establish and maintain mutually beneficial relationships with shareholders.
and other figures of the financial community, to maximize the value of the shares in the market. However, the current development requirements of greater access to information and corporate transparency today create significant challenges
Concerned parties
CONCEPT
Stakeholders – individuals or groups who can affect the activities of the corporation.
Shareholders – set of shareholders of a company.
Stockholders – are the potential investors who are part of the company’s capital.
Stockbrokers – runner the stock agent.
Therefore, Judy Turk, Doug Newsom, and Dean Kruckeberg express that Financial PR or Investor Relations, “is the area that includes similar activities such as preparing material for the study of shareholder security, developing an annual report acceptable to auditors. and clear for shareholders, and knowing where and to whom to publish the news that may affect the company’s values. ” Because Individuals who go through the entire behavioral molecule of the organization to make decisions about whether to buy securities or give advice to others about these purchases.
For the Investor Relations Society “Investor relations encompass the broad
range of activities with which a listed company communicates with its
current and potential investors ”.
PR Newswire agrees with this stance by stating that investor relations
They are “efforts undertaken by companies to communicate with their shareholders and analysts, and to bring awareness of the company to the general investment community.”
For their part, Grunig and Hunt describe four main financial audiences:
Current shareholders
Potential shareholders
Similarly, The financial community: bankers, brokers, investment advisers, securities analysts, and directors of funds, insurance companies, etc.
For instance, The financial media: journalists who work with specialized media, for the financial section of newspapers, etc.
STAKEHOLDERS / STAKEHOLDERS
Active publics, with high involvement
MUTUAL CONSEQUENCES
It transcends Company and investors:
Stock markets
International financial agents
Analysts
Media
Banks
State institutions
Parliament
Employees
More than information disclosure …
Because Individuals who go through the entire behavioral molecule of the organization to make decisions about whether to buy securities or give advice to others about these purchases. However, the current development requirements of greater access to information and corporate transparency today create significant challenges
In fact, many people, including regulators and competitors, generate opinions that can affect a company’s position in the capital markets. They look for information, and they look for it from many different sources.
They cannot be fooled.
Other scopes of financial PR
However, Communicate information, help understand it and get audiences to believe what they are told.
Acceptance, retention, interpretation, simplification.
Highly specialized field: requires financial, legal and business economics knowledge.
Truthfulness and Accuracy: Financial PRs have fewer options when designing their plans.
In conclusion, Thomas Rian and Chad Jacobs speak of the capital market and its players, when referring to them they express that “no public company operates in a vacuum. In fact, many people, including regulators and competitors, generate opinions that can affect a company’s position in the capital markets. “
