How website can play an important role in enhancing Investor relations?

By December 7, 2015 Articles No Comments

IR section of the Website

 The website of a company is often the first stop for any potential investor to get information on the company. As first impressions often are lasting ones, the importance of a well maintained, updated and easy to navigate website cannot be stressed enough. Though the whole website needs to be attractive, the Investor Relations (IR) section deserves special attention. This is for the simple reason that investors, both current and potential, spend most of their time at the IR section of the website.

 

 

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Relevance to the Company:

 Website is a tool at the disposal of the company to attract potential investors by projecting an image that the company wishes to be seen in. Website helps the company to spread its message far and wide. The IR website is more than a handy place to park all important documents. Its relevance can be highlighted with the following points:

  • Website helps to showcase how truly open and transparent the company is
  • The website influences the perception of the company and its IR program.
  • Website provides context, insight and interactive tools to help the visitor clearly understand company’s current and future business roadmaps.
  • Enables the Company to ensure control and compliance through simultaneous distribution, increased transparency and assess the impact of its message.

How to make an effective IR website:

A July 2014 study conducted by Rivel Research Group ‘The Global Buy ­ Side’s Take on IR Website’ found that buy ­ side analysts trust IR websites more when it comes to a company’s financial reporting than outside sources. However, three quarters​of the global buy ­ side mentioned that they lose interest in a company whose website is inadequately designed.

The study also outlines various elements that make for a best in class IR website. Easily accessible webcasts, SEC filings, presentations, and archived data were all high on their survey participants’ lists of required information. While most companies have this content present on their site, they need to ensure that it is easy to find, regularly updated and formatted intuitively.

Ideally an IR website should contain the following:

  • About Us
  • Why Invest?
  • Strategy and Business Model
  • Corporate Governance
  • Historical Financials
  • Investor and Earning presentations
  • Earnings call transcripts
  • Stock quote and performance over the past 5/10 years
  • Analyst coverage
  • Search tool
  • News Releases
  • Event Calendar
  • E-mail Alerts subscription
  • Investor contact information
  • Investor FAQs
  • Link to company’s social media channels
  • Disclaimer / Forward looking statement

The company should also optimize the website for tablet and smart phone use. This will help potential investors to access information on the go.

Tools to promote website:

The IR website has become an important tool to share company disclosures, announcements, facts and other relevant information. Some of the ways a company can highlight its IR website is by providing links in various publications such as Annual Reports, presentations, press release, social media posts, promotional material, etc.

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