Impacts of investment relations service quality on corporate information transparency and intangible value: the moderating role of competitive intensity

Ricky Y.K Chan, Jianfu Shen, Louis T.W. Cheng, Jennifer W.M. Lai

Research output: Journal article publicationJournal articleAcademic researchpeer-review

Abstract

Purpose
This study aims at proposing and testing a model delineating how and when the quality of a special B2B professional service, investment relations (IR), would drive corporate intangible value.

Design/methodology/approach
This study employs a proprietary dataset on voting records of an annual investment relations (IR) awards event and the corresponding company-level archival data for analysis. Regression analysis is used to test hypotheses.

Findings
IR service quality not only directly enhances corporate intangible value, but also indirectly boosts it via information transparency. While competitive intensity does not moderate the relationship between IR service quality and corporate intangible value, its moderating effect on the relationship between information transparency and this value is negative.

Research limitations/implications
The findings advance academic understanding of the mechanism and boundary conditions underlying the complex and dynamic relationships among IR service quality, information transparency, corporate intangible value and competitive intensity. Future research endeavors to verify the present findings in other service and/or geographic settings would help establish their external validity.

Practical implications
The findings advise companies to expand the traditional role of IR by taking it as a powerful communication and relationship marketing tool to improve their visibility and attract investors.

Social implications
The findings suggest that superior IR service would strengthen the company’s social bonding with institutional investors and effectively signal to them its commitment to good corporate governance practices.

Originality/value
Matching a proprietary dataset on IR voting records with the corresponding company-level archival data over a five-year period to investigate the performance implications of IR service quality within the Hong Kong context rectifies methodological limitation and geographic confinement of prior IR research.
Original languageEnglish
JournalMarketing Intelligence & Planning
DOIs
Publication statusPublished - 8 Apr 2024

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