Investor relations during an economic slowdown

July 10, 2022   |   Parikshit Singh

Recession can be disorienting and put increased pressure on management and their investor relations (IR) team to take the right steps to balance investor’s need for information with the best interests of the company amidst a rapidly changing environment.

  • Consider issuing their earnings releases slightly earlier than normal to give the Street more time to digest the contents before their earnings call.
  • Use Technology to Enhance Your Communication: Today’s technology allows flexible options for groups in different places to connect with you. Maintain an open dialogue with investors, and virtual options can help you continue meeting and deliver information.

Do not cancel investor meetings. To the outside world a cancelled meeting can be extrapolated into a story – a negative story.

  • Do proactive research and capitalize on it: The impact of a slowdown-type situation can temporarily expose companies to many operational and financial risks. You need to know, which investors are demonstrating interest in the company or requesting to speak with management? and; What is their investment strategy and historical track record? Certain institutions and investors become more active in a bear market or recession type situation — your IR team needs to have the capacity to market the Company effectively to these investors and raise capital (if required) since liquid cash is very essential for Companies navigating a crisis.
  • Be Visible: Communicate often and clearly, not just when there is something new. Providing voluntary disclosures is the need of the hour.
  • Discuss operational matters rather than the most recent financials.

Finally, it is important to envision recovery. What is the end state? At some point, everyone will look back on your actions during the crisis period. Think about how you will want your company and your actions to be perceived and act accordingly. Then, once the crisis has passed, you’ll emerge even stronger.

Your Contact:

Parikshit Singh, Director

Hal Clyde Denison Limited
Jaipur, Registered Office

Explore more

  • Importance of Corporate Governance, ESG, Strategy, and Communications

    We hope this newsletter finds you well. In this edition, we will be discussing the importance of Corporate Governance, ESG, Strategy, and Communications for Investor Relations.

  • ESG and Enterprise Risk Management

    Sixty-two percent of directors say ESG issues are a part of the board’s enterprise risk management discussions. Source: PwC, 2021 Annual Corporate Directors Survey, October 2021

  • Most discussed topics in Investor Relations

    AI, ML and the metaverse are the technology buzzwords of the moment. Articles discussing technology trends usually address the current hot topics with revolutionary zeal: the next big thing that will change the world as we know it. But the reality is more prosaic: often the technology that really makes a difference is much less…

HCDL Insights & Engagement
↑ System-generated recommendations

The HCDL Group and its legal entities are the sole owner of all the information, documents and images put on this website. One may not claim the information provided as their own or use it for any monetary gains without our written consent. The information on this site has been included in good faith and is for general purposes only. It should not be relied upon for any specific purpose and no representation or warranty is given as regards to its accuracy or completeness. Neither The HCDL Group nor its Promoters, associates, affiliates, employees, related entities, nominees, group companies, and sister concerns shall be liable for any loss/ damage/ expenses arising out of any access to or use of this site or the linked sites including, without limitation, any loss of profit, indirect, incidental or consequential loss.

Hal Clyde Denison Limited abbreviated as HCDL d/b/a HCDL Group.
© 2019-2023. All rights reserved.