The Financial Communication at the Heart of Institutional Investor Attraction: Challenges and Perspectives

Abstract

This article delves into the influence of the quality of financial communication on the investment decisions of institutional investors, thus placing this research within the realm of studies that consider financial communication as a fundamental element and an essential strategy aimed at engaging with stakeholders of companies. We chose to specifically focus on the investment decision-making of institutional investors due to their increasing importance in financial markets. This choice also stems from the close relationship between these investors and financial communication, where their mutual influence is significant. Institutional investors may exert pressure on companies they are considering investing in to improve the quality of their financial communication. In turn, this quality of communication can influence the investment decisions of institutional investors, often serving as their primary source of information when evaluating a company. To study this relationship, we examined the investment decision-making process of institutional investors through the lens of the quality of financial communication, taking into account various determinants. A prospective survey was conducted in the field, providing both qualitative and quantitative results that appear promising.

Keywords: Quality, financial communication, institutional investors, decision-making, financial market.

JEL Classification: F65, O16

Paper type: Empirical research