TY - JOUR

T1 - Do firms effectively communicate with financial stakeholders?

T2 - A conceptual model of corporate communication in a capital market context

AU - Brennan, Niamh

AU - Merkl-Davies, Doris

PY - 2018/6

Y1 - 2018/6

N2 - We identify what constitutes effective communication between firms and their financial stakeholders in a capital market context and establish criteria against which effectiveness can be evaluated. To do this, we introduce the concept of connectivity from the communications literature. We conceptualise connectivity as comprising three components: textual connectivity, intertextual connectivity, and relational connectivity. Connectivity refers to the ability to connect different sections of a text (textual connectivity), to connect texts of different time periods or different genres (intertextual connectivity), and to connect firms with their audiences (relational connectivity). We then propose criteria for judging effective corporate communication in a capital market context. Finally, we assess how digital communication and social media provide opportunities for improving connectivity in corporate communication for a broader range of shareholders.

AB - We identify what constitutes effective communication between firms and their financial stakeholders in a capital market context and establish criteria against which effectiveness can be evaluated. To do this, we introduce the concept of connectivity from the communications literature. We conceptualise connectivity as comprising three components: textual connectivity, intertextual connectivity, and relational connectivity. Connectivity refers to the ability to connect different sections of a text (textual connectivity), to connect texts of different time periods or different genres (intertextual connectivity), and to connect firms with their audiences (relational connectivity). We then propose criteria for judging effective corporate communication in a capital market context. Finally, we assess how digital communication and social media provide opportunities for improving connectivity in corporate communication for a broader range of shareholders.

KW - corporate reporting

KW - accounting communication

KW - connectivity

U2 - 10.1080/00014788.2018.1470143

DO - 10.1080/00014788.2018.1470143

M3 - Article

VL - 48

SP - 553

EP - 577

JO - Accounting and Business Research

JF - Accounting and Business Research

SN - 0001-4788

IS - 5

ER -