Financial communication has emerged in recent years, as instrument of listed companies, especially small and medium size (small and medium caps) in order to improve, strengthen or correct their visibility and establish their credibility in the financial market, with the primary aim of positively influencing recipients of the communication (and thus the economic and financial community), and these produce a change of attitude.
Financial communications consist of all communications made by the company about the evolution of the income and financial, strategic choices, to improve relations with the financial community, an accurate, timely and consistent information.
It is therefore a process to coordinate and integrate the corporate communication flows and distribution of information about the activities and the events that may affect the course (price sensitive events) as a result, investments, future projects, M & A, corporate finance transactions, etc.; process that aims to improve the image, understanding and transparency of the activities of the Company issuer against those who can then invest in the title, whether institutional investors (sell-side or buy-side) or retail investors.
As in all communication processes, including financial reporting is at the base will cause a positive change in the recipients of the communication, in the case of listed companies: the community economic viability. Measurable change on the basis of the position taken by the recipients of the communication as a result of messages received (an increase of coverage of a security, increased trade, increased number of publications on the title ... ... ..). Where then the communication is ineffective, there were errors and / or interference in the process of communication tasks that must be rectified as soon as possible. In fact there is no proper communication when it does not positively influence the message recipient in the latter producing a change of attitude in favor of the issuing company.
Securities Italian small and medium caps are characterized by low capitalization and low floating market, which discourages investment and influence of institutional investors, and these in turn have a propensity to invest funds in small and medium caps among the lowest in Europe. For institutional investors, followed by a medium or small cap is equivalent, and in some cases more difficult and costly, which follows a large cap: it takes expert analysts, industry knowledge, lack of studies for the small caps sector of international and everything has the same complexity and cost more than a society of greater equity. The majority of small caps in fact operates in niche markets. The trend to investment in large caps is also affected by increased demand for these securities and the availability of high floating market transaction volume necessary to trade more and more adequately profitable for institutional investors. We should add that in Italy the number of specialized collections on small cap is quite small and that they are frequently perceived by operators as securities with a greater appetite for risk and with still greater economic alea. In this context, the selection for investment in small and medium-sized companies also specialize in institutional investors becomes very strict and the choices are often influenced not only by the performance company, by particular characteristics of attractiveness. Therefore does not prove easy for small and medium caps emerge in the Italian stock exchange with consistent performance that will lead to enhancing the reputation and value of the securities. The small and medium sized companies as it felt the urgent need for greater visibility to be included in selective investment choice for investors.
The after-market financial communication (communication to the financial market after listing) thus becomes the key differentiator strategic corporate policy directly to the financial community whose primary focus should be: loyalty, establish that is, a solid relationship of trust with the public so as to increase the value of the company and its competitiveness on the market. The purpose of financial reporting in the IPO is to inform the market that the issuer's future performance, based on intrinsic characteristics of the company and its field of membership, and on the basis of the results obtained in the past, are reasonably expected to order to obtain the correct perception of the market and hence the exact position in the list without making wrong assessments that drastically penalize the company and its shareholders. While communication with the after-market is designed to develop and strengthen the relationship created being placed updating market participants on the activities of the company, future projects, the relevant facts, etc.. creating strong relationships of trust with the financial community in full compliance with transparency rules imposed by the regulatory authorities and market management. The after-market communication, especially in times of recession is a fundamental tool to monitor and stabilize the consensus of the financial community and / or rectify the negative opinion (or not adhering to the characteristics of society) which it could have earned on a company and ensure the company later, the possibility of returning to the market as a means financing of future corporate finance transactions (such as new capital gains). All this to reduce the possible gap or institutional market, develop a greater visibility of the Company to reduce the volatility of the stock and broadening the range of coverage.
transparency and continuity in the communication involved in the company's help in times of greatest difficulty, that is when corporate performance is not particularly positive, and the financial market has, however, need to be informed. It 'important to manage information accurately and know how and when to communicate. Investors reasonably not penalize the course of the title even after a quarterly negative if they were loyal to a line of business conduct that has always favored a transparent communication excellent, attentive and timely. There are many listed companies in Italy that are still at a delicate stage: to move from communication due (mandatory) to the voluntary financial reporting that provides greater breadth of communication, frequency and quality of information, diversity of instruments used. The notification requirement are not sufficient to ensure proper positioning and appeal of the title, or to ensure viability of the community an 'in-depth information about the company and the operation mechanisms of corporate and / or its market, which are guaranteed by the direct contact between the company and financial sources, information that becomes of prime importance for the investment decision. For a statement of excellence and then, today's disclosure requirements are not enough: we must do more and better than the others, otherwise, after the initial enthusiasm of the IPO is likely to weaken the interest and allow you to see your analyst " chasing "to another company. Therefore, the continued success of a title on the stock market small cap and medium passes through the definition of a relevant strategy, extended to minority shareholders, the synthesis of joint synergies between the Company, the market and Specialist communications company, which examines the nature of the license, market segments and sub-market, highly specialized, both nationally and internationally.
Imperative of after-market communication is therefore to establish an ongoing relationship with the financial community through a structured communication plan, which seeks to create measurable added value for the company and its shareholders, which properly positions the title positive effect on the financial market and the financial community, producing a change in this favorable towards the company can build a relationship of trust between the listed company and investors: they are institutional investors or retail investors.
Fersini Mastelloni White, CEO of Polytems Hir
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