Abstract:
There seems to be confusion in theory and practice about the nature of financial communication, and specifically the management and organisation thereof. The first objective of this article is to describe the current approach to financial communication, first from an investor relations perspective and then from an accounting perspective. Based on a review of relevant literature and a short description of the findings of previous empirical studies conducted in the United States of America, United Kingdom, Europe and South Africa, shortcomings of both approaches are identified. The most important shortcomings are a lack of coordination and integration in financial communication efforts and a narrow focus on the financial community alone (an exclusive approach). The second objective of the article is to propose an inclusive and integrated approach to the management and organisation of financial communication. This is done in the form of a conceptual model, which is based on perspectives from the public relations, investor relations, accounting and general management literature.
