Communicating with financial analysts

Communicating with financial analysts

The results of a new global survey of financial analysts’ opinions on corporate reputation management, have interesting implications for corporate communicators. "Return on Reputation," published by Hill & Knowlton in association with market and public opinion research agency MORI, examines the way investment analysts assess company performance and shareholder value and identifies the key factors driving investment decisions.

The report notes that “clear and consistent communication with key stakeholders and transparent disclosure are crucial non-financial elements contributing to the assessment of a company’s value - the great majority of the analysts interviewed have given negative ratings on account of poor communication with stakeholders.”

Other interesting findings around analysts' communication preferences include:
One-to-one meetings and conference calls with analysts have the greatest impact. Company presentations and annual reports are also important ways of communicating with analysts.
Clear communication of company strategy is vital, followed by achievements against strategy markers and any necessary changes of senior executives.

Most analysts wish to be communicated with monthly or quarterly and only half of analysts think companies should listen to them more.