Financial communication is the strategic communication of financial information from companies to a range of stakeholders such as investors, analysts, lenders and the media. It encompasses both regulatory reporting such as annual reports and quarterly reports, as well as proactive communication such as company presentations and capital markets activities. The objective is to build trust, ensure accurate valuation of a company and facilitate access to capital.
Why does financial communication require professional handling?
IR communication directly impacts how a company is valued by the market and which investors are attracted to it. Clear and transparent communication reduces information risk, which lowers the cost of capital. Incorrect or unclear information might mislead the market, damage confidence and lead to regulatory problems. For listed companies, financial communication is also legally regulated through stock exchange rules and securities legislation. Successful financial communication requires precision and an understanding of what constitutes material information, what needs to be communicated and how insider information should be handled.
What should be included?
IR communication includes financial reporting such as annual reports and quarterly reports translated by IFRS experts, corporate communication where strategy documents and presentations explain business models and value creation, capital communication such as press releases about financial results and material events and investor dialogue through meetings, conference calls and IR websites. Secure data handling and confidentiality agreements are an important aspect of this process, as the information communicated often contains insider information. Fluid Translation is an experienced language partner with 20 years’ experience in financial communication. We work according to ISO standards with ISO-certified system support. We use the four-eyes principle where at least two financial experts review translations and copywriters refine key texts such as CEO statements for optimal communicative impact. With an ICR (In Country Review) platform, customers can validate translations before publication. Read more about our clients here.