Influence of the growing ETF industry on active investor relations work38 Fundamentals of investor relations and buy side analysts Hence they act as a link between the company and its institutional inves tors they are in regular contact with the company and also obtain their information from it Schnor renberg 2008 pp 141 Their recommendations for action which in addition to a description of the company also include future prospects and profit expectations can have a direct impact on the share price and indirectly influence it as well as the trading volume As sell side analysts have a great influence on the investment decisions of investors due to their multiplier effect and their high degree of specialization they are very import ant for investor marketing Theilen 2008 p 111 Therefore maintaining contact with analysts and continuously providing them with information is of great importance for the company Financial journalists like analysts are interested in following the company but unlike them they do not publish detailed studies but are rather on the lookout for news Press releases from the company serve them as an important communica tion measure in this respect Schnorrenberg 2008 p 142 3 3 Description of investor relations work 3 3 1 Overview of IR tasks The core task is to communicate reliable informa tion regarding the past and future development of the company to the financial community In addi tion IR also communicates with other stakehold ers and constituencies and has a strategic man agement responsibility to ensure a fair valuation of the company Theilen 2008 pp 29 Attention should always be paid to a clear and unambig uously formulated communication style In order to achieve credibility in communication the target group oriented approach should be capital mar ket oriented and comprehensible Furthermore attention should be paid to transparency with a focus on materiality and equal treatment Conti nuity in which attention is paid to the issues of topicality compatibility and expectation manage ment is another important factor of credibility Theilen 2008 p 54 IR takes over the coordination of the content of mandatory publications and ensures that nec essary deadlines are met Allgäuer and Larisch 2011 p 246 Since the IR manager can be seen as the link between the financial community and the com pany he or she has to ensure a steady exchange of information On the one hand IR absorbs pro cesses and circulates important information and feedback it receives from the capital market and passes it to the managing board On the other hand IR provides the capital market with the latest information of the company Allgäuer and Larisch 2011 p 246 IR is in regular contact with other communication divisions e g public relations of the company and helps employees with external client contact by means of communication guide lines IR thus assumes an internal advisory role which goes hand in hand with an accountabil ity for comprehensive reporting of observations on the capital market and a self reflection of its own IR activities Streuer 2004 p 63 Moreover IR supports the strategy development within the company and helps communicating it to the cap ital market To attract new investors and to not lose the trust of existing ones IR managers must constantly follow emerging trends in the market and be aware of the latest investor requirements Kirch hoff 2008 p 109 This involves a market analysis including an assessment of the investor and share holder structure Streuer 2004 p 46 Analyzing the competition and defining a peer group which is intended to provide a best practice orientation from the company s point of view are also part of strategic IR tasks For investors the classification of the company in a peer group offers a compa rability based on multipliers and key performance indicators KPIs Theilen 2008 p 69

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