The course provides a broad overview of the field of financial communication, covering the following topics:
- Communication Theory foundations: the pragmatics of human communication
- Finance foundations: information and the financial markets
- The pragmatics of signaling
- The Interaction Field: key concepts and application to the financial markets
- The Interaction Field: firms, investors, intermediaries and other stakeholders
- The interaction schemes and the genre system of financial communication
- The disclosure process
- Quantitative and qualitative aspects of firm valuation
- The importance of business narratives for financial communication
- Start-up narratives that are too good
- News, narratives and the financial markets
- The end of narrative: social media disruptions, hype and crypto
- Narrative turning points: going public
- Corporate governance and investor activism
The course will help students to
- Use foundations of communication theory and finance to understand financial communication as social interaction between multiple stakeholders around investment activities and as information flow affecting investment decisions.
- Understand the interaction between firms and financial markets in terms of signaling and disclosure, taking into account intermediaries and other stakeholders.
- Focus on valuation as the core of the communicative interaction between firms and financial markets, appreciating the synergy of qualitative (narrative) and quantitative information in firm valuation
- Appreciate the importance of business narratives for the financial markets and how they change from start-up, to IPO and through crises.
- Become familiar with some of the most common and important genres of financial communication.
- Use both the finance and the communication scholarships to understand financial communication problems.
In class discussion of cases and problem-solving activities.
Reading, summarizing and presenting relevant scientific literature
Group activity: In class presentation: narrative and numbers in firm valuation (10%)
Group activity: in class presentation of relevant scientific literature (10%)
Final written exam (80%)
- Damodaran, Aswath. Narrative and numbers: the value of stories in business. New York: Columbia Business School, 2017. (Textbook. Students are expected to be deeply acquainted with its contents)
- Laskin, Alexander V.. Investor relations and financial communication: creating value through trust and understanding. Hoboken, New Jersey: Wiley Blackwell, 2022. (Textbook. Students are expected to be deeply acquainted with its contents)
- Laskin, Alexander. The Handbook of Financial Communication and Investor Relations. John Wiley & Sons, Ltd, 2017. (Students will work in groups to analyze and present select chapters from the Handbook)
- Master in European Studies in Investor Relations and Financial Communication, Lecture, 2nd year