Companies are failing to communicate effectively with their investors, according to a survey by Ernst & Young on corporate attitudes to risk – Companies on risk.
The survey – the second in a major series on Global Risk, based on interviews with 441 senior executives across 16 countries – shows that while companies and investors agree on the need for good communication on risk, there is a mismatch between the focus of corporate communications and the needs of their investors.
Major communications gap between companies and their investors
Earlier Ernst & Young research identified that although 41% of investors will refer to annual reports on matters of risk, almost half wanted a much more personal and focused communication on risk through one-to-one briefings. This second study reveals a major gap – only two in five companies identified having a policy of communications to major investors as important and only 18% actually used one-to-one briefings with investors.
See full Press Release.
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