Case studies

A well-developed investor and public relations program can help make important improvements to a company’s stock valuations, price volatility and help build better relationships with your stakeholders.

A Wharton Business School-Harvard Graduate School study argues that companies who hire investor relations consultants to develop and execute communications strategies lead to significantly improved trading activity, institutional investor ownership, analyst following, and press coverage.¹

In their acclaimed book, “Using Investor Relations to Maximize Equity Valuation,“ Ryan and Jacobs observe that stocks move for two primary reasons:

1. Company performance, both past (actual) and future (expected);
2. The strategic communications effort used to convey that performance to investment community.²

They further declare that 20% to 40% of a company’s valuation is linked directly to its intangibles.²

We at Segue Ventures believe that it is in the intangibles where your investor relations program should outperform. These intangibles include the nuances of value, managing expectations and perceptions and the ability to define, deliver, and create a dialogue about the company’s financial performance and position in its industry to the investment community.

• B. Bushee and G. Miller, Investor Relations, Firm Visibility and Investor Following. The Wharton School, Univ. of Pennsylvania and Graduate School, Harvard Univ. (Preliminary 2004)
• Thomas Ryan and Chad Jacobs, Using Investor Relations to Maximize Equity Evaluation. John Wiley & Sons, Inc. (2005)