The Importance of Financial Communication in a Business

Effective financial communication bridges the gap between financial experts and investment decisions makers. In the research paper, “The Financial Communication During a Period of Transition,” authors A. Heldenbergh, C. Scoubeau, L. Arnone and M. Croquet argue that financial communication is concerned with more than financial figures and data – it plays a key role in building an organization’s image, reputation and confidence.


Financial information is important to an organization’s business partners. Customers need to have confidence in a company. They need to know that a company manages its finances effectively so that it can continue to provide a reliable source of supply for the long term. Suppliers and other business partners want to know that they will have a continuing profitable relationship with the organization.


Employees should think and act like long-term shareholders, according to investment firm Goldman Sachs. Keeping employees informed about financial performance encourages a culture of stewardship for the firm. Financial communication also ensures that employees play their part in maintaining regulatory compliance. Better informed employees raise awareness of compliance issues and show regulators a company is serious about compliance, says consultancy firm Firehouse Communications.


Access to funding is vital for growth and survival. Effective financial communication plays an important role in shaping the attitudes of shareholders, investors and their advisers. As consultancy firm Ernst & Young points out in “The Financial Communication Challenge,” financial stakeholders want a cohesive story about company performance. They report that, although companies provide a great deal of financial-performance information, stakeholders continue to find it difficult to get a clear story and are less trusting as a result of the financial crisis.


Financial communication is no longer seen as a burden or something that requires formal compliance, according to Professor Pierre Di Toro and Dr. Alessandra Stefanoni in “Business Entities and the Environment.” Instead, they argue, it represents an opportunity to make information available about the economic value an organization produces. That information can generate further value by opening new relations or strengthening existing ones.

Financial Communications

Financial communications

Financial communication makes up a significant part of Corporate Communications’ workflow. The target groups for financial communication are both important and demanding. Corporate Communications’ advisors have vast experience with investor relations work for listed companies. Our work is characterised by acute financial skills and high precision levels. Simultaneously, we add an extra dimension to the work through or broad understanding of public affairs and the society in general. Today’s financial markets are increasingly international, and Corporate Communications has an established international network of partners in the world’s financial hubs.

Within financial communications we support our clients within three different areas:

1. Investor relations
Investor relations (IR) covers strategic and operative communication with investors and other relevant financial target groups, and contributes to making the company’ potential more visible and well understood – while at the same time reducing uncertainty. We support listed companies in areas such as:

  • Quarterly reports
  • Running the IR-function
  • Video production
  • Regulatory issues
  • Investor meetings, roadshows, etc.
  • Investor targeting
  • Capital market days
  • Corporate governance
  • Issue management

2. IPOs and transactions
Financial transactions offers complex communication challenges, and Corporate Communications assists with some of Norway’s largest transactions, equity issues and stock exchange listings.

3. Financial PR
In Corporate Communications we have an in-depth understanding of finance as well as a broad understanding of communication. This combination reaches its fullest potential in financial PR, creating synergies between IR and PR for listed companies. A company’s reputation may be improved by engaging in proactive media work based on financial information. Similarily, a strong profile in the media may contribute to increased interest from investors. This is best achieved when you integrate your IR and PR work.

Financial PR also includes advising companies within the financial sector, such as banks, fund management companies, brokerage firms and private equity companies. These clients emphasise that communication strategies and activites are founded on financial knowledge and understanding.


Published by: Eaugrads

Evangelical Alumni Foundation seeks to fulfill "The Great Commandment and The Great Commission" to GOD's great economy. Each of us has great purpose as Sons of God. We are many in one body. Together, we are firmly planted by streams of water to bear fruits in all seasons. We shall not lack no good thing. Deuteronomy 1:11 God's Spiritual Billionaire's! Brief about our founder of Eaugrads: "JESUS"... "His pursuit of us is Relentless, His desire to Fight on our behalf is never ending; Despite the day to day distractions, designed to stop us from reaching our destinies, we can be sure of this... what God starts; He Finishes." Amen! Ministered By Tanya Harris, LLD

Leave a comment

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s