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The Importance of Information about the Value of a Company in the Context of Effective Investor Relations
Abstract
Theoretical background: The article addresses the issues of investor relations and information policy of a company in relation to information required by investors to evaluate a company. The article draws attention to various categories of value and ways of measuring it. The importance of information on the cost of capital and risk for the fair company valuation is also discussed.
Purpose of the article: Identification of various categories of value and ways of measurement in the context of effective investor relations and determination of the scope and content of information related to the company valuation required by investors, with practical verification of the usefulness of information provided to investors (based on a case study).
Research methods: The study is of a conceptual nature – theoretical considerations are based on literature review aiming at identification of the scope and content of information adequate to investors’ expectations and empirical illustration is based on a case study in which the method of content analysis is used to analyse the information disclosed by a selected Polish company.
Main findings: The article indicates the necessity and scope of required information for a proper company valuation. Practical verification of the content and scope of information provided to investors indicated a significant information gap, which results from both insufficient legal regulations in this respect, non-compliance with European requirements, as well as the lack of understanding by investors and issuers of the importance of effective investor relations for the proper valuation of companies in the capital market.
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DOI: http://dx.doi.org/10.17951/h.2020.54.4.19-30
Date of publication: 2020-12-29 19:34:51
Date of submission: 2020-06-22 19:35:12
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