Introduction:
Nowadays, deregulated and globalized financial markets force companies into competition for investors. The challenges capital market-oriented companies have to meet are increasing information needs of investors and rigid rules and regulations. Well implemented and managed Investor Relations and Corporate Reporting activities that gain the trust of the financial market could assist in facing up to competition.
Financial and Corporate Reporting is all about communicating the long-term strategic alignment, quality and experience of the management as well as other factors that determine the value of the company, e.g. a sustainable, solid business development associated with a transparent corporate communication. From investor's and analyst's points of view, which are geared to a forward-looking approach in case of an investment decision, the information value of traditional and predominately retrospective financial statements encounters its limits.
The ambition of legislator and standard setter to make the group management report to a value- and future-oriented instrument is a signpost in the right direction. The group management report should additionally facilitate estimates about the future development of the company by a stronger consideration of the management's view. Numerous empirical studies provide evidence that the capital market is affected by imperfect and unequally distributed information (asymmetric information distribution) as well as by conflict of objective and interest between the management (agent) and shareholder (principal).
Modern Investor Relations and Corporate Reporting activities go beyond the mere communication of facts and figures. Investor Relations and Corporate Reporting reduce skepticism and create transparency by building up a direct relationship to the investor.
The present master thesis examines interdependencies between companies and investors as well as the organizational integration in the company's structure by means of scientific theories. In addition, a primary research of 10-DAX companies regarding their Investor Relations and Corporate Reporting activities ascertains how several communication measures are effectively applied in practice and how much importance companies attach to well managed capital market communication.
The survey reveals strengths and weaknesses of today's capital market communication and outlines future prospects of Corporate Reporting.
The present master thesis "Investor Relations and Corporate Reporting - An empirical analysis of 10 DAX-companies" is structured into six chapters. It starts with the introduction which includes the executive summary and the scope of work that is realized in here.
The second chapter deals with a detailed definition of the problem that causes the relevance of this master thesis, the determination of the objectives as well as the methodology that describes the assignment's structured procedure.
Chapter three provides the fundament on which the theme of the thesis may then be developed and elaborated. The general basics on Investor Relations and Corporate Reporting should offer the reader the opportunity for a first step into the topic.
Chapter four is focused on the relevant theories of Investor Relations and Corporate Reporting. At this juncture in particular the neo-institutional theory including the principal agent and the transaction cost theory is being analyzed. A determination is made to what extent the theories are applicable to explain Investor Relations and Corporate Reporting activities.
In chapter five a primary research is realized that reflects the findings of the previous chapters and introduces the results of the survey of 10- DAX companies regarding their Investor Relations and Corporate Reporting activities. This chapter covers the theory of the empirical study including all relevant aspects of the survey, e.g. the conception, the definition of the survey target, the identification of the population and sample and the questionnaire design. It also contains the data analysis of the empirical study and exhibits the knowledge gained verbally and graphically as well as outlines the findings for Investor Relations and Corporate Reporting.
Finally, the results of this master thesis are summarized; especially whether the set objectives are reached as well as critical comments about the master thesis are given in the last chapter. Furthermore, an outlook about possible future effects of applied Investor Relations and Corporate Reporting is provided.
