The value of (private) investor relations during the COVID-19 crisis

Daniel Neukirchen, Nils Engelhardt, Miguel Krause and Peter N. Posch

Journal of Banking & Finance, 2023, vol. 147, issue C

Abstract: We investigate the value of investor relations (IR) and find firms with strong IR to experience between five and eight percentage points higher stock returns than those with weak IR during the COVID-19 crisis. Firms with better-quality IR are also associated with higher investor loyalty and appear to have attracted significantly more institutional investors over the crisis period. This suggests that a firm’s IR contributes to value generation by enhancing credibility with shareholders and by diversifying its shareholder base. After decomposing IR into public and private transmission channels, we find the private IR function to be the main driver of our results.

Keywords: Investor relations; Financial markets; COVID-19; Institutional investors (search for similar items in EconPapers)
JEL-codes: G14 G15 G32 M41 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:147:y:2023:i:c:s0378426622000504

DOI: 10.1016/j.jbankfin.2022.106450

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