Twitter is rapidly becoming a standard part of the IR communications arsenal, but some are skeptical.
In a recent newsletter from IR Global Ratings, Twitter was suggested as not only a legitimate but a necessary communications tool. The writer highlighted main of using Twitter: it can be updated in real time and viewed remotely, by wireless connections or mobile phones, perfect for the IR communications ideals of timeliness and accessibility They go on to mention Twitter’s ability to reach a wider part of the public than conventional disclosure instruments and it’s exponential growth the past months, now potentially reaching more than 5 million users worldwide.
Others are less enthusiastic about Twitter’s potential role as a reliable tool in the future of investor relations, Scott Chaikin, Chairman and CEO of Dix and Eaton recently said in a twitterview with the Examiner.com that he feels “…it’s a good tool to draw attention to but not for disclosures. The format’s too abridged to be practical for one thing. User base not representative enough, and too wild-west-ish (how do I know it’s really from and vetted by GE, IBM, etc?)”.
They both make valid points; Twitter if a fast and easy way for a targeted audience to get your updates in real time, but there’s not enough accountability to trust it with disclosure and as a stand-alone communications tool. I suggest taking advantage while avoiding the pitfalls by using twitter to hyperlink to your more traditional online communications tools. That way, users can be directed to your press releases, or straight to your annual report for that matter, via their laptops or even straight on their mobile phones, while you keep the integrity of the source and avoid the whole wild-west scenario.
Whether or not Twitter will revolutionize the world of investor relations remains to be seen, but if they manage to make it a more reliable tool, it feels like a safe bet that Twitter has a future as more than a tool for attention-starved teens.
Eight Iris is also on Twitter. We can be followed at http://www.twitter.com/8iris
- Published:
- August 3, 2009 – 12:37 pm
Singaporean institutional investors are willing to pay a quantifiable premium for companies with good investor relations practices, according to a new joint study from the Singapore Management University and the Investor Relations Professionals Association (Singapore) (IRPAS)
The study, published in June 2009, found that 89% of Singaporean institutional investors would pay a quantifiable premium for SGX-listed companies that practiced good IR. A third of those asked quizzed would pay a 10% premium, while almost a quarter would pay a premium higher than 15%.
It was also discovered that most institutional investors rated the current level of Singaporean IR as below those of comparable markets, suggesting that increased efforts in this area would be highly effective in improving the value of SGX companies. It concludes that companies ‘could invest much more in IR than they currently do’, and that closing the gap between IR standards and the expectations of investors could pay handsomely.
The implications of this study is that institutional investors clearly realize the value of good IR and the efforts of the people behind it; the credibility of management and IROs were rated as the most important qualities in a company’s IR.
The complete Institutional Investors’ Assessment of Investor Relations in SGX-Listed Companies’ is available for download in PDF format from IRPAS’ website.
The SMU/IRPAS Joint Study (via IRPAS)
- Published:
- July 23, 2009 – 11:14 pm
Investors look for useful information, and as a guideline anything that makes your IR website information easier to use is a good idea. Most investors are not content just seeing your data, they want to mold it, crunch the numbers, plug them into their models. When you give financial figures, think about how they can be used for the myriad ratios and formulas that they use to reach their decisions.
The traditional way for investors to get these figures is either by subscribing to a third party service or by exporting the figures manually from your annual report or IR website.
Multinational personal products manufacturer Colgate-Palmolive makes the process easier by offering the raw numbers in Excel format on their annual reports section. This simple solution means that the data is in a format that should be comfortable for all investors and one that is very easy to play around with or export to whatever software or service the investor prefers. Notice also how the files come complete with footnotes, giving users the context they need to understand the raw data.
Visit Colgate-Palmolive’s annual report page
- Published:
- July 20, 2009 – 7:00 am
IR Global Rankings continue their rankings of companies based on geographic location. While we can’t vouch for their selection method, the winners are usually worth a look:
North America – General Electric
Europe – BASF
Asia Pacific – Wipro
Greater China – China Telecom
Latin America – Allstate
- Published:
- July 19, 2009 – 8:00 am
If you’re wondering about how to make your corporate social responsibility (CSR) page worth reading, follow the principles that Swedish clothing company H&M apparently adhere to:
1. Put a human face on the CSR section: CSR Manager Ingrid Schullström lends her portrait to the front page of the section, which even features her own weekly blog on CSR issues and investor enquiries.
2. Link your CSR thinking to investor interests: The heading of the section introduces this concept:
“At H&M, quality is about more than making sure that our products meet or exceed our customers” expectations.
It also means that they have to be manufactured under good conditions and that our customers must be satisfied with us as a company. Taking responsibility for how our operations affect people and the environment is also an essential prerequisite for H&M’s continued profitability and growth”. After all, profits and growth are what investors are really about.
3. Show examples: H&M avoids the boring theoretical talk about principles and ideals which so often dominates CSR sections and can make them virtually unreadable. The right hand column links to examples of H&Ms CSR in action, as well as relevant reports and downloads.
Visit H&M’s CSR web page
- Published:
- July 18, 2009 – 8:30 am
Companies are often very aware of the need to give their brand name and products a personality and they may spend millions conveying this to the consumers. Usually they also try to give their company a personality, more accurately called a business philosophy, but most often they don’t share this important part of their business with investors. They should, and Party Gaming shows how to use the annual report to do it.
Party Gaming, the Gibraltar based online gaming company, is famed in IR circles for its creative, amusing and informative annual reports. The 2009 annual report (available as a PDF or in html) is no exception.
(On the annual report wesbite, click on the icons on the upper left to change the display format)
Made up of easy, energetic language and amusing illustrations, the report leaves the impression of a company that’s well managed and serious about its business but above all based on fun and a love of their business. The feel of the report makes you feel like you know what their everyday operations are like, what it must feel like to work for them, and the spirit with which they approach challenges and the future of their business It’s the kind of report you might expect, but sadly don’t get, from companies with similar philosophies like Google Inc.
Visit Party Gaming’s annual report website
- Published:
- July 17, 2009 – 11:16 am
Vattenfall’s 2008 annual report is notable for its textbook execution of a central theme. The theme, “Making electricity clean”, is sustained throughout the report. It is substantiated with examples and plainly explained and serves to unify the report and leave the reader with a lasting impression of the Swedish state-owned energy producer.
Report Watch’s “The Annual Report on Annual Reports” named it Report of the Month for May 2009.
View Vattenfall’s 2008 Annual Report
- Published:
- June 12, 2009 – 1:36 pm
