{"id":40950,"date":"2012-07-03T09:00:57","date_gmt":"2012-07-03T08:00:57","guid":{"rendered":"http:\/\/www.corporate-eye.com\/blog\/?p=40950"},"modified":"2012-06-29T13:56:51","modified_gmt":"2012-06-29T12:56:51","slug":"academic-theory-practice-ir","status":"publish","type":"post","link":"https:\/\/www.corporate-eye.com\/main\/academic-theory-practice-ir\/","title":{"rendered":"The Intersection of Academic Theory and the Everyday Practice of Investor Relations, or, This Isn’t as Boring as It Sounds"},"content":{"rendered":"

\"\"<\/span>This Spring marked the fifth anniversary of my leaving the corporate world for the much less structured world of teaching, consulting and writing.<\/p>\n

I like to think that the change has brought some perspective, as I’ve had the opportunity to step back from the day-to-day pressures of investor relations and really think about what it is IR practitioners do, or attempt to do, in their interactions with investors.<\/p>\n

Couple this with the opportunity I was presented to develop a MBA level investor relations class at the Jones Graduate School of Business<\/a> at Rice University, and it presents a rich area for thought. Never being one for keeping my thoughts to myself, over the course of the coming posts I plan to set forth some of the thinking I’ve done on how the practice of investor relations intersects with the theories of finance, capital markets and corporations.<\/p>\n

My thinking here is that if people have a better understanding of the theory, the practice will improve. By way of example, you don’t have to be a mechanical engineer to drive an automobile, but an understanding that it is powered by an internal combustion engine that requires periodic maintenance will result in better operation and upkeep of the car.<\/p>\n

When you think about the discipline of investor relations, it incorporates aspects of marketing, communications, finance, law and the capital markets. It requires a thorough knowledge of the company and its industry and the regulatory environment in which the company operates. Further, the audiences it affects go far beyond just investors to encompass employees, customers, suppliers, creditors, bondholders and governmental entities, among others. When you throw into the mix that there are some schools of academic theory that hold that active investing and investor relations activities add no value, there\u2019s quite a bit that can be discussed.<\/p>\n

Just by way of a teaser for some of the topics I will cover in coming posts, here are some of the things I plan on writing about:<\/p>\n