© Pint of Science, 2024. All rights reserved.
How does language influence investors' opinion about business performance? We will argue that communication strategies are more effective than hard information
Pitching as a theatrical performance
Dr Ruben van Werven
(Lecturer in Entrepreneurship)
Entrepreneurs need communicative skills to convince investors to fund their start-ups. By implying that the future of their early-stage company looks bright and presenting it as if it has already come to pass, entrepreneurs seem to have good chances to persuade investors of the growth potential of their company.
When sentiment persuades more than numbers
Chiara De Amicis
(PhD Student in Finance)
They say that mathematics is a perfect science and numbers are quite objective. However, it seems that managers can partially guide investors' expectations about firm performances by communicating firm fundamentals in a more optimistic way. Such rosy outlook then may serve to dampen a negative market reaction in presence of negative performances or to push stock prices up in presence of major corporate events (e.g. M&A).
Map data © OpenStreetMap contributors.