Beyond PR

May 12, 2017

Do Institutional Investors Use IR Websites for Their Due Diligence?

Last week via Question 2 of the 2017 Shareholder Communications 365 Study, we learned that the majority of institutional investors that hold your stock only visit your investor relations website once a month or once a quarter.

This implies that the IR website is not a highly trafficked data tool for your current analysts, but certainly they do check in to see what new content you’ve added to expand your “financial narrative.” Afterall, as these are current institutional investors, a smart IR team is already actively managing the communications to this known audience, not leaving the task to a passive IR website.

But what about unknown institutional investors? What is their relationship with your IR website?

Question 3:

Verbatim comments include:

  • If I can’t get information on Blomberg.
  • Only to download specific materials i.e. annual report.
  • When it seems needed, but almost always rely on other sources.
  • Depends on how much info I already have.
  • I may visit based on 3rd party information.
  • Depends on the news/catalyst.
  • If I am looking for some extra info and feel of the company. 

95% is the affirmation we need to understand that a company MUST have an IR website. This is sales & marketing to fuel their due diligence research that you are a real company with a professional presentation like our clients and proudly offer. Also, they are looking for unique content not found in their terminals like investor (PPT) presentations.

PR Newswire hosts over 780 IR and PR websites for clients.

Read question 2. Question 4 coming soon.

About the Shareholder Communications 365 Study

Now in its fifth year, this exclusive study asks investors 30 tactical questions regarding how they consume your shareholder communications content. Beyond the IR website, we asked about earnings calls, annual reports, news releases and overall transparency. From these tactical answers, IR teams can sculpt their shareholder communications efforts and budget.

Since 2012, the study has evolved. Initially, it was predominantly retail investor-based. In 2016 we added a Wall Street v Main Street comparison (CLICK HERE). This year, per client discussions, we cut to the chase: 3,780 responses from 100% institutional investors.

Author Bradley H. Smith, a self-confessed connoisseur of IR websites, is Director of Marketing and Shareholder Communications at PR Newswire / Cision.

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