Shielding or engaging: the use of online shareholder platforms in investor relations

Abstract

PurposeThe purpose of this paper is to analyze antecedents of listed corporations’ propensity to adopt online shareholder platforms. It differentiates two strategic investor relations (IR) frames, shielding and engaging, and explores their effect on ICT adoption.Design/methodology/approachFindings are based on a survey of 82 corporations listed on the Swiss, German and Austrian stock exchanges. The authors apply multiple linear regression analysis to test a multi-faceted adoption model.FindingsThe authors find that resource constraints, familiarity with online media and efficiency considerations drive listed corporations’ willingness to adopt online shareholder platforms. Beyond these operational antecedents, strategic considerations significantly affect adoption: IR functions geared toward shareholder engagement are more likely to apply interactive platforms, while IR departments geared toward shielding the corporation from shareholder interventions will be less attracted to the participatory affordances of online media.Research limitations/implicationsThis study is limited in scope to corporations listed on the Swiss, German and Austrian stock exchanges and cannot account for antecedents distinct to other regulatory environments.Practical implicationsIR functions need to carefully develop and apply communication strategies, which in turn will inform ICT adoption. The authors find that IR departments geared toward a two-way symmetrical communication model are more attracted to the participatory affordances of online platforms. Thereby, they are more likely to innovate by employing current digital applications.Originality/valueThis study contributes to research on the benefits of digital media to two-way symmetrical and dialogic corporate communications. It is the first study to explore these relationships in the context of IR. It further contributes to research on the strategic role of IR by developing and applying two distinct strategic frames to the subject of ICT adoption in IR.