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Jan 23, 2023

Investor feedback key metric for IR measurement

Fewer than two in 10 Asian IROs consider their role to be highly valued by senior management

New IR Magazine research reveals more than nine in 10 IROs at Asian firms view investor feedback as the most popular form of measurement when it comes to assessing the performance and efficacy of IR programs.

This is higher than in Europe, where 84 percent of respondents believe investor feedback is a top metric, and in North America, where 78 percent deem investor opinion a popular factor.

According to the IR Benchmarking 2023 report, which collates the findings from nearly 770 respondents to research conducted in Q3 2022, Asia also bucks the trend in other metrics.

The data shows 84 percent of Asian IROs believe the speed of response to investors and analysts plays a key role in the success of an IR program. Fewer than six in 10 North American businesses believe the same.

IROs in Europe consider meetings, roadshows and events with the investment community a key component in the evaluation of their IR program.

Asian IROs place greater importance than any other region studied on factors such as analyst coverage, level of engagement, the composition of shareholder base and share price/volatility.

IR from the top

While the research looks at the methods used by companies to obtain feedback from investors on their IR strategy, it also delves into the importance of IR to senior management and the wider company.

Only 18 percent of Asian IROs think IR is considered either very or extremely important by senior management at their firm, 4 percentage points below the global average of 22 percent.

In addition, the data reveals that the highest percentage of Asian IROs (54 percent) believe the pandemic has shifted the way senior managers evaluate the success of IR programs. This compares with North America and Europe, where more than 70 percent believe executives evaluate the success of IR exactly as they did pre-pandemic.

The research also notes that the role ESG plays in investor relations has grown in the post-pandemic world. On a global scale, 42 percent of companies surveyed believe ESG has become increasingly important. This is most keenly felt in Asia, where 50 percent of respondents say ESG weighs more now on the evaluation of IR programs than pre-pandemic.

IR Magazine’s IR Benchmarking 2023 report is available to subscribers.

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