Corporate communication

Abstract

Unlike efficient financial markets addressed in the neoclassical theory of finance and the portfolio theory, in real financial markets there is information asymmetry, i.e. market participants decide based on different information. Suitable communication strategies can thus enable companies to influence the price of their securities at the capital market. This too is an aspect of strategic corporate finance. Rather than passively accepting the role of price takers, companies instead actively play a part in shaping the capital market. © 2009 Springer-Verlag Berlin Heidelberg.