A man in a suit is holding a computer. A brain-shaped illustration of electronic connections depicting artificial intelligence hovers above the screen.
Shareholder Engagement

Advisory Intelligence: Falling Large-Cap Company Conference Attendance

Mike Stiller, co-head of Strategic Capital Intelligence at Nasdaq IR Intelligence, spoke with IR Magazine about the evolving landscape of investor relations and how data is driving the business.

Mike Stiller, co-head of Strategic Capital Intelligence at Nasdaq IR Intelligence, spoke with IR Magazine about the evolving landscape of investor relations and how data is driving the business.

The implementation of MiFID II last January has disrupted the investor relations landscape; one area we have found impacted by this disruption is the downturn in conference attendance for some of the largest public companies in the world.

New data from Nasdaq IR Intelligence reveals that the largest global public companies by market capitalization participated in two or three fewer conferences in 2018 compared to the previous year.

On average, mega-cap companies participated in 12 conferences last year while large-caps participated in nine, which represented an average decline of two to three conferences, according to Nasdaq’s research. Meanwhile, mid-caps participated in seven and small-caps participated in five, which was unchanged year over year.

Mike Stiller, co-head of Strategic Capital Intelligence at Nasdaq IR Intelligence, noted that the slip in conference attendance for the larger companies comes as clients have said they’re getting less out of conferences than they used to.  

“It comes down to who is in the room,” Stiller told IR Magazine. “Clients tell us that they see a lot of the same people over and over again. The onus is on IR teams to find new people to talk to.”

Investor marketing remains as intensive as in previous years. But the data shows that two-thirds of all in-person investor meetings are happening outside of sell-side conferences, which is the result of a rise in direct engagement, according to Stiller. He has also observed an increase in IROs with a sell-side or financial planning and analysis background.

“There are new people in the IR seat, and they know how the machine works,” Stiller said. “They know how the sell side operates, but they also know the key accounts on the buy side and the people to talk to in their sector. 

To study the emerging trends in investor targeting, Stiller and his team looked at how much time IR teams spent engaging with existing versus prospective holders, finding that large-cap companies spend 55% of their outreach with prospective shareholders on average, while mid-caps spend 67% and small caps spend 77% of their time on targeting potential new investors.

On average, it can take two quarters and two meetings, of which at least one is with management, to bring in a new investor into the fold. More selective stock pickers may require five meetings. But that time with investors pays off, with the average initial investment at about $140 million, according to data from Nasdaq’s Strategic Capital Intelligence.

Read the full interview here.


NASDAQ IR INTELLIGENCE

Companies across all industries, sectors and regions partner with Nasdaq to maximize the effectiveness of their IR initiatives and enhance shareholder value. Our global team of consultative experts and industry-leading software provide our clients with strategic, actionable intelligence and unparalleled visibility into the capital markets for the long term.

Follow us on Twitter: @Nasdaq

Follow us on LinkedIn: Nasdaq

© Copyright 2019 Nasdaq, Inc. The Nasdaq logo and the Nasdaq ‘ribbon’ logo are the registered and unregistered trademarks, or service marks, of Nasdaq, Inc. in the U.S. and other countries. This communication being is provided to you by Corporate Solutions, a business of Nasdaq, Inc. and certain of its subsidiaries (collectively, “Nasdaq”), for informational purposes only and is of general character only. None of the information herein constitutes advice, a recommendation, solicitation, invitation or inducement to buy or sell securities of any kind, or as commentary on the value of any security. Before making any investment decision, you should seek independent legal, taxation or financial advice. Nasdaq makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. At the time of publication, the information herein was believed to be accurate, however, such information is subject to change without notice and Nasdaq makes no representation or warranty as to the correctness or completeness of the information.  The information provided in this report remains, unless otherwise stated, the copyright of Nasdaq and may not be used, reproduced, published or copied, in whole or in part, in any form or for any purpose whatsoever without the express written permission of Nasdaq. This information is not directed or intended for distribution to, or use by, any citizen or resident of, or otherwise located in, any jurisdiction where such distribution or use would be contrary to any law or regulation or which would subject Nasdaq to any registration or licensing requirements or any other liability within such jurisdiction. By reviewing this document, you acknowledge that neither Nasdaq nor any of its third-party providers shall under any circumstance be liable for any lost profits or lost opportunity, indirect, special, consequential, incidental, or punitive damages whatsoever, even if Nasdaq or its third-party providers have been advised of the possibility of such damages. Additionally, unless due to willful tortious misconduct or gross negligence, neither Nasdaq nor any of its third-party providers shall have any liability in tort, contract, or otherwise (and as permitted by law, product liability), to you or any third party. This disclaimer is governed by the laws of the State of New York.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Nasdaq MarketInsite

Ideas that drive capital markets

Learn More