I am asked, on occasion, for my view on “web disclosure,” which is defined within the investor relations niche as using a newswire to distribute – instead of a complete earnings announcement – a truncated earnings financial summary or a brief paragraph alerting investors that the complete earnings financial results are only available on the company’s IR website.
It is essential to understand the impact, other than word-count, that a truncated earnings release will have on stakeholders, especially institutional investors. However, before we continue, it’s clear that I may have a subjective and commercial prejudice on this topic… including a mortgage and a kid in college.
To bring an unbiased and objective voice to this conversation, we contracted IR industry perception and analysis stalwart Rivel Research. They canvassed, by telephone, 350 Buy-side professionals on the topic of earnings and news releases.
Rivel Research asked:
“Some public companies, mega to small-cap, have considered not sending out earnings releases anymore and only posting the results on their IR website.
Do you think public companies should make this change?”
Targeting your earned media
This is not a Regulation Fair Disclosure (RegFD) compliance discussion. We all know those rules by now.
This is a shareholder communications and targeting discussion – assuring that the right influencers (analysts and portfolio managers) get the full narrative (earnings results) in the manner that suits them (their Wall Street portal). You may want to speak with your external stakeholders yourself to understand their internal processes and research workflow.
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