How Outcomes and Outputs explain IR significance

For my blog assignments I have decided to research and establish the different contributions made by Investor Relations departments. As with Public Relations, it is difficult to see the exact monetary benefits created by these IR professionals.

After only a week of Google alerts and research on the subject, Professor Laskin’s research on the topic has already become prevalent. Many of the articles I have encountered were either by our professor, or cited his research as one of their sources for their established information.

An article I found wrote on what information was needed in order to establish the exact benefits that could be recognized from the organization’s IR department. Outcomes and outputs were listed by David Michaelson. The definition of outputs is listed as the results of a communications program. In order to evaluate the success of a department, the number of analyst reports on the company, quality of analyst coverage and the amount and type of media coverage help to examine the contribution made by these professionals.

While outputs help to examine contributions, outcomes are what is seen as most beneficial within IR. Michaelson states in his article that "However, for investor relations, it is outcomes that are the critical standard for measuring and evaluating success. The one bottom line measurement for the investor relations executive is achieving a fair market value for the stock. Few communications functions have such a readily available – and public – measurement standard. It is an outcome that is tangible and traceable".

We have learned in class that the value of stocks cannot be too high or too, but instead it must be fair. In order for IR to contribute as much to companies as possible, the must keep stock prices at a fair value.

Other forms of outcomes are how the company is selling in relation to its peers, trading volume that cannot be too high or too low, and promotion in business media.

After only a small amount of research, Professor Laskin’s influence seems clear and he seems to contribute research and experiments on the exact contributions being made. In further weeks I hope to learn more about IR contributions research, along with seeing how IR has contributed to certain successful companies.