Investors want better information on business value drivers. How can <IR> principles help?
When evaluating companies, investors firmly focus on the future. Last year’s earnings may be a good starting point, but what about the company’s strategy and its progress in implementing it? How will this drive value? Although corporate reports could answer these questions, many don’t.
There’s a gap between what investors need to know about business plans and long-term strategy and what corporate reports are telling them. This reporting gap makes it harder for investors to discern the true drivers of value creation in a business.