Taking the mystery out of investor behavior
By: COYNE, Kevin P.
Contributor(s): WITTER, Jonathan W.
Material type: ArticlePublisher: sep.2002Havard Business Review 80, 9, p. 68-78Abstract: How well does your company know its investors? Probably not as well as it thinks. But by taking a hard look at the trading patterns of your key stockholders, you can uncover what drives their actions and predict how they'll react to your next strategic move. Your company knows its investors pretty well, right? But do you know how they'll react to any particular strategic decision react to any particular strategic decision your company might make? Probably not. The consequences of not knowing can derail your strategy, leading you to miss out, for example, on acquisitin opportunities. Authors Coyne and Witter claim that in most companies, the decisions of fewer than 100 investiors typically account for about 70Abstract: of the changes in a company's share price. They also claim that a new approach to investor relations, drawing on the one used to manage customer relations, can help companies paint a more complete picture of their investor's behavior and motivationsItem type | Current location | Collection | Call number | Status | Date due | Barcode |
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Periódico | Biblioteca Graciliano Ramos | Periódico | Not for loan |
How well does your company know its investors? Probably not as well as it thinks. But by taking a hard look at the trading patterns of your key stockholders, you can uncover what drives their actions and predict how they'll react to your next strategic move. Your company knows its investors pretty well, right? But do you know how they'll react to any particular strategic decision react to any particular strategic decision your company might make? Probably not. The consequences of not knowing can derail your strategy, leading you to miss out, for example, on acquisitin opportunities. Authors Coyne and Witter claim that in most companies, the decisions of fewer than 100 investiors typically account for about 70
of the changes in a company's share price. They also claim that a new approach to investor relations, drawing on the one used to manage customer relations, can help companies paint a more complete picture of their investor's behavior and motivations
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