Company’s Annual Report Is Most Important Source of Information for Investor Research
Canadian Investor Relations Institute and PrecisionIR Announce the Results of Investor Survey
RICHMOND, VA – November 22, 2005 – PrecisionIR, from WILink plc (LSE: WLK.L), a worldwide provider of web-based communication solutions and online investor relations services and the Canadian Investor Relations Institute (CIRI), a professional, not-for-profit association of executives responsible for communication between public corporations, investors and the financial community, announced the results of their joint survey to investors about investment research habits. Over 200 investors participated in the September 2005 survey which was developed to give public companies feedback on meeting investors’ needs for information.
Investors ranked the Annual Report as the most valuable source of information for their investment decisions. Corporate news releases, quarterly reports, analyst reports, and corporate websites followed in importance. Other trends included:
· 92% of investors read the annual reports of companies in which they are currently invested
· 88% review annual reports of companies they are considering for investment
· 86% of investors say they are using annual reports for investment research as much as or more often than last year
· 80% of investors preferred a professionally printed, hard copy annual report over an electronic download
“This study clarifies how investors want to be communicated with and public companies cannot afford to ignore their investors’ demands despite the costs involved,” says Bob Tait, President and CEO of the Canadian Investor Relations Institute. “Public companies are faced with many choices in how they communicate with their shareholders and CIRI is dedicated to giving investor relations professionals the tools to make the right decisions. It is never the wrong decision to provide investors what they want in the form they prefer.”
In terms of content within the annual report, 65% of investors would like to see more information on Corporate Governance included in annual reports, and 44% want more information on environmental compliance. Investors ranked the financial statements and notes most important with management’s discussion and analysis next, followed by the review of business segments.
“Even with all the third party information available via the Internet, investors still want to review the details presented straight from the companies through their annual reports.” said J. Patrick Galleher, chief executive officer of WILink, plc. “Many companies are trying to reduce the amount they spend on annual reports, but they should consider how their annual report will impact investors’ perceptions.”
Investors also weighed in on their preference for attending company presentations via the Internet versus the phone, with 45% preferring webcast presentations, 32% in-person presentations and 6% via teleconference.
To order the complete findings, visit CIRI’s website at http://www.ciri.org/resources/library/ciri_publications/?item_id=340 or call PrecisionIR at 804-327-3410 for more information.
About WILink
WILink plc (www.wilink.com) provides web-based communication solutions and online investor relations services. Since 1989, WILink has helped clients such as Hewlett Packard, Deutsche Telecom and BP improve the effectiveness of their investor communications. WILink’s services include PrecisionIR™ (www.precisionir.com) and PrecisionFM™ (www.precisionfm.com) investor-communication programs that enable publicly traded companies and mutual funds to deliver compelling communications to a targeted audience of investors. WILink’s Vcall® (www.Vcall.com) webcasting and web conferencing provides innovative technology and professional service that enables organizations to create compelling and influential web events.
About CIRI
The Canadian Investor Relations Institute (CIRI) is a professional, not-for-profit association of executives responsible for communication between public corporations, investors and the financial community. CIRI is dedicated to advancing the stature and credibility of the investor relations profession and the competency of its members.
For more information, please contact:
Nancy Christman, VP of Marketing North America, nchristman@wilink.com, 804-327-3410
Mary Blair, Director, Member Services, mblair@ciri.org, 905-274-1639
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