Designing an investor focused communication strategy framework based on dialogic theory : an interpretive qualitative study of publicly listed companies in South Africa

Abstract

Considering the recent corporate scandals faced by the South African capital market, stakeholders are understandably more sceptical about the accuracy and transparency of information being communicated to them. An integral stakeholder group which forms part in the success of an organisation is its investors. Since investors have increasing demands and specific information needs, it is essential that organisations communicate relevant and useful information by means of investor relations. However, despite its importance, academic research in the field of investor relations, specifically in terms of communication, is lacking and does not correlate with the importance of the function in corporate practice. The aim of this study was to propose an investor focused communication strategy framework based on dialogic theory, for South Africa organisations listed on the Johannesburg Stock Exchange. This was done by investigating investor relations theory within the broader context of dialogic theory and crystallising the most critical constructs to include in a communication strategy. The research design employed in this study was an interpretive multiple case study qualitative inquiry which included an investigation of current investor relations regulations that publicly listed organisations have to adhere to and engage in. The proposed framework is the culmination and outcome of a synthesis of an in-depth literature review, a content analysis of communicative products- and semi-structured interviews with the investor relations officers of the case organisation. Propositions informing the proposed framework is put forth and the proposed framework serves as the original contribution of this study.