REPORT: 66% of institutional investors listen to earnings calls before they consider a position

Two weeks ago, we learned about the listening practices of current shareholders in regard to earnings calls. But what about potential (hopeful) investors? Does the verbal tenor of your CEO matter to them? Do investors go beyond the flat numbers and listen for the cadence of confidence?

As you can see below, over two-thirds of institutional investors tune in before they take a position.

q14_2016_100072

There’s no question, webcasting your earnings call is important. True, regulatory-wise you don’t “have” to webcast. However, it’s essential content for investors… a point small-cap companies need to heed.

Click here to request the complete Shareholder Confidence 365 Study.


About the study

Initially launched in 2012, the Shareholder Confidence 365 Study is an ongoing survey targeted at two key constituents with whom public companies communicate: institutional investors and individual investors. It was the first study of its kind — directly asking investors how they consume investor relations content. In 2014, we published an updated study.

For this 2016 iteration, we have segmented and compared the results between institutional investors and individual investors. To date. we have accumulated over 6,870 responses from a pool of 16,000 buy-side analysts & portfolio managers and from over 15,000 long-term holding retail investors. There are 29 questions.

Questions include:

  • How often do you visit IR websites?
  • Why do you visit IR websites?
  • Do you use Twitter for stock research?
  • Would a CEO video instill trust?
  • Do you use earnings estimates?

The inbound response ratio is 1:3, Wall Street to Main Street. All of the data is unedited, except for any typos within the comments and the exclusion of inappropriate comments.

 

 

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