According to the latest report on these sites of IR review. This compares to just 8% who consider websites ineffective for institutional engagement and is a higher proportion than the 62% of IROs who consider them effective in dealing with retail investors.
IROs’ perception of the usefulness of websites for engaging with institutional investors increases with company size. Among small-cap IROs, 72% rate websites as effective for institutional engagement, with 6% rating them as very effective. These numbers increase with each cap size up to mega-cap, where 86% of IROs consider them effective and 19% very effective.
The report, which appears in the fall edition of IR magazine, also identifies what institutional investors think of the usefulness of IR sections on corporate websites. When asked to rate their usefulness, 65% of institutional investors say they are very useful when looking to invest in a company and 63% find them very useful for companies they already invest in.
Most requested features
Institutional investors’ appreciation for the usefulness of a website is highest among North American investors, where three-quarters consider it very helpful when looking to invest in a company. This number drops to 56% among Asian investors.
Further research in the report shows that the typical content included by IROs on their websites largely matches the information that institutional investors want to see there. The most common features on an IR website are press releases, event and reporting calendars, and a named IR contact. All of these are among the top three features requested by institutional investors.
But there are some differences between what institutional investors want to see and what typically appears on an IR website. When asked to identify which of the 10 key features are currently available on their website, IROs list products and services as the seventh most common. But products and services are the third joint key feature that institutional investors look for on IR web pages.
Similarly, estimates from equity research analysts are not as common as institutional investor interest in them. A quarter of North American investors identify these analyst estimates as a key feature of interest on IR websites, although they are virtually unknown on North American company IR pages. They appear on more than a third of European RI web pages, where almost half of investors identify them as a key feature they want to see.
IR magazineit is IR Websites Click to read the IR Magazine Research Report – IR Websites