After reading this chapter, students should be able to:
Understand the growing importance of public relations in investor relations. Knowledge of the historical and current factors contributing to the growing importance of investor relations and the interest in how public relations is used in the financial arena. |
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Describe the relationship between financial relations and investor confidence. Knowledge of the role of financial relations in relating information about company value and how this information is used to foster relationships with investors and the financial community. |
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Define the characteristics of a corporate communications strategy. Knowledge of the role consistency, credibility and clarity have in determining the strategic communications plan for reporting financial information. |
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Detail the legal framework that established the principles of full and fair disclosure of financial information. Knowledge of the reasons the Securities Exchange Commission was established to insure that the public received full and fair disclosure about the character of securities. |
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Describe the role public relations plays in preparing SEC financial reports. Knowledge of the reasons public relations practitioners should be involved in the preparation of the various reports required by law. |
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Understand the relationship between financial companies and a stock exchange. Knowledge of the requirements from stock exchanges about news and information of listed companies and how practitioners deal with the disclosure of the information. |
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Understand the importance of disclosing truthful information. Knowledge of the historical framework and consequences of releasing untruthful information concerning the financial situations of companies. |
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Describe the crisis issues faced by practitioners involved in financial relations. Knowledge of the tender offer and proxy fights and how financial relations practitioners deal with these critical issues. |
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Detail the core publics of financial relations. Knowledge of the primary publics of financial relations – stockholders, financial analysts and the financial press – and strategies used by practitioners to inform these groups about various issues. |
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Understand the processes and strategies for communicating with the publics of financial relations. Knowledge of the processes and functions of public relations in planning, preparing and distributing information to the primary publics through annual meetings and annual reports. |