This paper reviews the existing literature on investor relations. The purpose of investor relations is consistently to provide market participants with decision-relevant information as a result of either mandatory or voluntary information-disclosure policies. A causation chain between investor relations and stock prices is established through the liquidity hypothesis with respect to the depth of analyst coverage. Though a positive association is documented, it is not perfectly linear. After presenting the taxonomy of corporate disclosures, we elaborate on how well the full-disclosure and the discretionary disclosure models fit into reality. In addition, the extant theoretical and empirical literature reports that investor relations policies vary over time, across firms and jurisdictions. © 2010 Wirtschaftsuniversität Wien, Austria.
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