Building mountains in a flat landscape: investor relations in the post‐Enron era

Abstract

In the post‐Enron era, investor relations vaults to the top of the corporate agenda, as companies must begin to rebuild investor confidence. While companies sift through the many questions investors are raising and the numerous proposals for change, proactive companies have the chance to distinguish themselves and create a competitive advantage. As the marketplace calls for faster, more transparent, more‐easily‐understandable financial data, the same investors punishing companies may well reward those that provide innovative answers to their needs. How did things get so bad? In response to a turbulent, hyper‐sensitive stock market, what are companies doing to restore confidence? What are the take‐away lessons for investor relations?