Understanding investor relations and business processes: towards closing an organizational gap in non-financial performance measurement and reporting

Abstract

This paper identifies the propensity for an organizational or management gap to exist in non-financial performance measurement and reporting and suggests minimizing this gap by applying communication-based paradigms of customer relationship management to investor relations. Companies need to integrate cross-functional activities of non-financial measurement and reporting and infuse a non-traditional investor-relationship focus. Otherwise, non-financial measurement and reporting could have an erroneous influence on shareholder value. Further research conceptualizing this approach linked to cash flow can facilitate the development of theoretical constructs on the role of investor relationship management in shareholder value.