Survey Says....High-Quality IR Pays Off

Proper messaging, comprehensive disclosure, and a proactive approach to engaging the street; all are hallmarks of an effective IR strategy.

But does high-quality IR pay off? All other things being equal, including strong business fundamentals, can a company with better IR practices expect a better market valuation that its peers?

According to a survey conducted by The Equicom Group, with the assistance of the Canadian Investor Relations Institute (CIRI), the answer is a resounding yes.

One of the key findings of the survey, which polled 42 members of the professional investment community, revealed that 98% believe IR has an impact on market valuation. Even more telling is that 93% of those same respondents indicated they would pay a premium for a company with more credible IR practices. Conversely, 67% of investment community respondents said they would assign a discount to a company with less credible IR practices.

Results from 43 professional investor relations professionals polled showed a similar take on the correlation between strong IR and market valuations.

Want to know more? The complete results of the survey can be viewed and downloaded http://www.equicomgroup.com/survey.

Crystal Quast
Senior Director, Media Relations