How small cap firms get good news out to investors
04/06/2024
Companies with a smaller market capitalization have a tougher time getting investors’ attention, since they lack the communications muscle of bigger firms and don’t get much coverage from analysts or the business press. So instead, as a new study reveals, they pick their shots to make the most of their limited resources, opportunistically utilizing conference calls, press releases and social media to get the word out about positive earnings.
Based upon an interview with Andrei FILIP, a Professor at IÉSEG School of Management, and his paper, “Grabbing Investor Attention with Limited Resources: A Study of Small Cap Firms’ Communication Channels,” co-written with Romain Boulland of ESSEC Business School, Alessandro Ghio of Universite Laval and Luc Paugam of HEC Paris, published in European Accounting Review in August 2023.