ESG Archive

Mar 01, 1996
How do you conduct investor relations in a country awash with capital but with an undeveloped stock exchange, not least when the country concerned is officially unrecognised by the rest of the world? Taiwan is the world's 14th largest trading nation, but that trade is mostly based on the incessant enterprise of a mass of small and medium-sized firms which raise their capital from savings and family networks. Its entrepreneurs tend to go to the stock exchange fo...
Read more
Mar 01, 1996
If you have ever felt that your life was not your own because of the demands of this profession we serve, please raise your hand now. As investor relations officers, we bear the weight of our companies on our backs. And 24 hours a day, at that, especially now that markets are truly global. There's no rest for the weary - here, there or anywhere - in this job. Even professional pleasures are all too often cut short by urgent business back home. Take, for exampl...
Read more
Mar 01, 1996
Case One: You run a big conglomerate that isn't doing as well as it once did, partly because it seems to have lost its touch, partly because conglomerates are out of fashion - again. So you decide to split the group into its constituent parts. After all, that's what the market likes these days. To your great consternation, however, the market is unconvinced, demands all sorts of as yet unworked-out details, and marks your stock price down. Case Two: You run a...
Read more
Mar 01, 1996
With Nick Leeson serving his six-and-a-half year sentence in a Singapore jail and the catalogue of derivatives disasters continuing to grow, the investment community is taking a long, hard look at derivatives trading. Some of the mistrust of these instruments is attributable to a continued lack of understanding of their mechanics and of the positive role they serve within companies' treasury departments. And IROs have to bear some of the responsibility for that lack ...
Read more
Mar 01, 1996
It's not so long ago that media monitoring was a pure commodity business. Serried ranks of sharp-eyed youngsters would clip newspaper reports about company X or Y; photocopy the relevant extracts and stick them onto sheets of paper, together with the names and dates of the papers or journals from which they came; then pass them to someone else for delivery to the client. More often than not, that client was a public relations firm. And the purpose of the whole...
Read more
Feb 01, 1996
The cover story of this issue concentrates on the attempt to increase employees' sense of involvement - and therefore their productivity - by making arrangements through Esops or other mechanisms to provide them with a stake in the companies for which they work. The stake is real enough, since it generally takes the form of a shareholding. But it's not normally something employees are given on a plate. Rather they acquire it, sometimes in exchange for reduced ...
Read more
Feb 01, 1996
The king is dead! Long live the king! I remember reading these lines in history class at school. Their lesson was that in a monarchic form of government, succession is known in advance and is immediate on occurrence. There exist rules which state who is next in the succession line and, barring the interference of some barbarian at the gate, the transition takes place automatically. Although modern corporations are certainly not monarchies, it can happen that l...
Read more
Feb 01, 1996
Tsukada Nakajima of the Itochu Corporation is one of those rare individuals who span the gap between Anglo-American and Japanese investment practices. The very nature of business at Itochu - one of the great sogo shosha, or trading companies, set up in 1858 to take advantage of the original opening up of Japan to foreign trade - means it has always had an outward looking perspective. Now Itochu is party to the opening up of Japan to western IR concepts. The mu...
Read more
Feb 01, 1996
According to data from Bank of New York, one of three depositaries producing comprehensive statistics, some 10 bn shares worth $278 bn changed hands in 1995, a 37 per cent increase over trading volume and a 12 per cent increase in dollar volume over 1994. Yet total new capital raised amounted to about $12 bn, compared to a record $20 bn in 1994, and the number of new programmes dropped to 203 from 265.'While 1993 and 1994 were dominated by Latin American ADR issuers,...
Read more
Feb 01, 1996
Little serious effort has been made over the years to track the shareholder rolls of Asian listed equities. Emerging stock market mechanics are not always smooth enough to monitor positions with accuracy, and family-controlled corporations are not always as transparent as Western counterparts. Still, the day may come soon when shareholder analysis will become an indispensable IR tool, supporting proxy plays and defending M&A candidates in a maturing capital mark...
Read more
logo-black logo-black
Loading