Seminar: Do Firms Effectively Communicate with Financial Stakeholders?
December 6 @ 11:30 am - 1:00 pm
Speaker(s): Niamh M. Brennan
Affiliation: University College Dublin
Organised by: Performance Management research cluster
Do Firms Effectively Communicate with Financial Stakeholders?
A Conceptual Model of Corporate Communication in a Capital Market Context
Niamh M. Brennan of University College Dublin will present a paper ‘Do Firms Effectively Communicate with Financial Stakeholders? A Conceptual Model of Corporate Communication in a Capital Market Context’ on 6 December. The paper was co-authored by Doris M. Merkl-Davies of Bangor Business School, Bangor University, UK. The event is being organised by the Whitaker Institute’s Performance Management research cluster, which is led by Elaine Wallace and Geraldine Robbins.
Effective corporate communication can be judged in various ways, e.g., how quickly audiences respond to it, whether it results in changes in their attitudes, beliefs, or decision-making, and to what extent different audiences interpret it in different ways.
The paper proposes seven standards-of-textuality criteria for judging effective corporate communication in a capital market context and, on this basis, evaluate how well it is communicated currently. It introduces the concept of connectivity as a key aspect of effective communication. Connectivity consists of three components, namely (1) textual connectivity, (2) intertextual connectivity, and (3) relational connectivity. Connectivity refers to the ability to connect different sections of a text (textual connectivity), to connect texts of different time periods or different genres, e.g., by navigation devices and hyperlinks (intertextual connectivity), and to connect the firm with its audiences, e.g., by embedding e-mail addresses and phone numbers (relational connectivity).
Prior research is reviewed through the lens of the seven standards of textuality and the key concept of connectivity. The paper addresses how these communication standards are likely to lead to improvements in the communication of corporate reporting information. The paper concludes with suggestions for further research.