Nonfinancial Information in Investor Communications

Abstract

This study conducts an empirical investigation of financial and nonfinancial information in investor relations communications. First, the study reviews various classifications of nonfinancial information and intangibles, then surveys U.S. investor relations professionals about the frequency and importance of communicating these types of information, and then compares these results with what an investment community expects from corporate disclosures. The study concludes that, overall, investor relations officers satisfy the informational needs of investors with one notable exception: although information about management is rated as one of the most important by investors, investor relations officers fail to share this information and fail to see its importance. At the same time, information about corporate social responsibility is rated as the least important by both investors and investor relations officers, and, as a result, this information rarely enters investor communications.