Non-numerical investor communication – Does the depth of non-numerical communication in the financial outlook of an equity story impact investment decision?
Murto, Janette (2021)
2021
Julkaisu on tekijänoikeussäännösten alainen. Teosta voi lukea ja tulostaa henkilökohtaista käyttöä varten. Käyttö kaupallisiin tarkoituksiin on kielletty.
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2021102552168
https://urn.fi/URN:NBN:fi-fe2021102552168
Tiivistelmä
Today's investors not only want fact sheets; they want a deeper understanding of the company, its business model, and opportunities to create added value. (Laskin & Laskin, 2017) This is why most of the review produced by a company about its past and future performance is communicated non-numerically, utilizing language (Hales, Kuang, and Venkataraman, 2010).
The objective of this thesis is to determine whether and how the use of in-depth non-numerical investor communication in the financial section of an equity story impact investors’ investment decisions on the Finnish stock market.
A qualitative in-depth semi-structured interviews were chosen as the method of this research, and the research results have been chosen to be analysed thematically. The research group is based on the demographics of Finnish investors, and disproportioned stratified sampling has been utilized in the selection of the study group. In its brevity, the study will examine the importance of non-numerical communication in investment decisions by presenting to the research group the equity stories of two different companies, one using in-depth non-numerical communication to support the financial information, while the other presenting mostly financial information in numbers and only superficial information non-numerically.
The research revealed that the use of in-depth non-numerical communication to support the financial situation and future goals of a company in its equity story increases the investability of the company and this way impacts positively on investors’ investment decisions. The study results also highlighted the importance of non-numerical investor communication in listing communications, as it provides an opportunity to provide facts to investors they need when making investment decisions that numbers alone cannot tell. In addition to telling facts, nonnumerical communication can also directly affect an investor’s image of a company, which can be an essential factor in competing with rival companies on the stock market to stand out. Furthermore, the findings also provide theoretical contribution and practical implications.
The objective of this thesis is to determine whether and how the use of in-depth non-numerical investor communication in the financial section of an equity story impact investors’ investment decisions on the Finnish stock market.
A qualitative in-depth semi-structured interviews were chosen as the method of this research, and the research results have been chosen to be analysed thematically. The research group is based on the demographics of Finnish investors, and disproportioned stratified sampling has been utilized in the selection of the study group. In its brevity, the study will examine the importance of non-numerical communication in investment decisions by presenting to the research group the equity stories of two different companies, one using in-depth non-numerical communication to support the financial information, while the other presenting mostly financial information in numbers and only superficial information non-numerically.
The research revealed that the use of in-depth non-numerical communication to support the financial situation and future goals of a company in its equity story increases the investability of the company and this way impacts positively on investors’ investment decisions. The study results also highlighted the importance of non-numerical investor communication in listing communications, as it provides an opportunity to provide facts to investors they need when making investment decisions that numbers alone cannot tell. In addition to telling facts, nonnumerical communication can also directly affect an investor’s image of a company, which can be an essential factor in competing with rival companies on the stock market to stand out. Furthermore, the findings also provide theoretical contribution and practical implications.
Kokoelmat
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