I read today, As brokers hit social networks, will companies meet them there?. The article by Dominic Jones brings up interesting points regarding the use of social media by IRO’s and companies to inform investors.
From what Jones says, the IR industry seems to have some fear and/or mistrust surrounding social media. This appears to be the reasoning for the lack of use and the prohibition by many firms against using social media as a form of business communication. FINRA, the Financial Industry Regulatory Authority, has stated that it will begin looking into if regulation and these sites can someday coexist.
It’s and interesting topic that many in the industry, especially the younger IRO’s. You could potentially see firms using media such as Facebook or twitter to report quarterly’s or even a firms full yearly financials. It brings up the question of how transparent are firms and companies willing to be? Using new media like this could open up the doorway to newer, younger investors and could help companies reach out to the younger generations.
My question still remains one of transparency and how far companies are willing to go to inform their public. With the newer technologically savvy generation coming of age, it begs another question, will firms and companies adapt to the technology or will they become dinosaurs?
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