Exploring the Relevance of Relationship Management Theory to Investor Relations
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This study examines the relevance of an established public relations theory, relationship management, to investor relations. Having emerged during the 1950s, investor relations is a relatively new field that integrates the disciplines of communication, marketing, finance, and securities laws compliance. Through qualitative interviews focused on six publicly traded companies on the West Coast, the study provides insight into the relationship management function of investor relations from the perspectives of those whom investors ultimately hold accountable for a public company's performance - CEOs. The dominant theme emerging from the study is the constant challenge CEOs of public companies face as they engage in relationships with investors, primarily due to the constraining effects of regulatory requirements. While the study confirmed that the interviewees value L. C. Hon and J. E. Grunig's qualities of trust, satisfaction, control mutuality and commitment in relationships with investors, CEOs' most frequently discussed relationship quality that they work to achieve is trust.