International operating environment and investor relations

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Volume Title

School of Business | Master's thesis

Date

2018

Major/Subject

Mcode

Degree programme

Corporate Communication

Language

en

Pages

71 + 8

Series

Abstract

Objective of the thesis The objective of this study was to understand how the international operating environment influences investor relations (IR) communication. International operating environment is a wide concept. Therefore, certain elements which may affect the IR within the international concept were specifically chosen to be further investigated under this thesis work. These elements include culture and language, regulation, channels and genres and their influence on IR work. Additionally, any possible future challenges that the IR (within the international environment) may face were looked into this thesis work. These elements were also addressed in the four research questions of this thesis. Methodology This study adopted a qualitative research design. Empirical data was gathered through semi-structed interviews with three investor relations officers (IROs), two equity analysts and two other professionals in the IR field. Two of the surveys were conducted in London, the UK and five in Helsinki, Finland. Findings and conclusions The findings of the study confirm the importance of two-way communication and trust building in IR profession with the management and investors and other stakeholders. The international environment is highly competitive field and in order to be successful, it is important to know the investors of a company. In Finland the companies are small or medium size and that is one reason why they need to put more effort in IR activities when seeking foreign investors. Based on the findings the professional culture in financial sector was seen stronger than national culture, due to a fact that IR is a field that is highly regulated. Hence the knowledge of different cultures and languages had seen as a competitive advantage. National culture is shown also how the investors require tailored service and how they value disclosure. And the IRO needs to have current knowledge of constantly changing rules and regulations affecting their work duties, such as Securities Markets Act and the Market Abuse Directive.

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Thesis advisor

Eräranta, Kirsi

Keywords

investor relations, IR communication, international environment, international business communication

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