The Role of Investor Relations and Good Corporate Governance on Firm Performance in the Case of the Companies Listed on the Bucharest Stock Exchange

Bogdan Aurelian Mihail, Dalina Dumitrescu, Daniela Serban, Carmen Daniela Micu and Adriana Lobda
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Bogdan Aurelian Mihail: Doctoral School of Finance, Bucharest University of Economic Studies, 6 Piata Romana, 010374 Bucharest, Romania
Dalina Dumitrescu: Department of Finance, Bucharest University of Economic Studies, 6 Piata Romana, 010374 Bucharest, Romania
Daniela Serban: Doctoral School of Finance, Bucharest University of Economic Studies, 6 Piata Romana, 010374 Bucharest, Romania
Carmen Daniela Micu: Department of Masters in Board Practice and Directorship, Henley Business School, University of Reading, Greenlands Campus, Henley-on Thames, Oxfordshire RG9 3AU, UK
Adriana Lobda: Department of Masters in Board Practice and Directorship, Henley Business School, University of Reading, Greenlands Campus, Henley-on Thames, Oxfordshire RG9 3AU, UK

JRFM, 2021, vol. 14, issue 12, 1-12

Abstract: The objective of this paper is to investigate the role of Investor Relations (IR) in the performance of companies listed on the Bucharest Stock Exchange. The study is motivated by the findings in the literature that investor relations may boost information disclosure, analyst following, institutional investor share, liquidity, and business valuation. The current article contributes to the relevant literature by making use of the recently released unique database of VEKTOR scores on company investor relations for 2019 and 2020. The main finding based on regression methodology shows that IR scores have a strong positive relationship with firm performance. Specifically, a one standard deviation rise in the IR score corresponds to a 2.6% rise in company ROA. Companies may be advised to strengthen their investor relations based on these findings about the beneficial role of investor relations.

Keywords: corporate governance; investor relations; firm performance; Bucharest Stock Exchange; Romania (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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