ABSTRACT
This chapter introduces relationship management as a core responsibility of financial communication and investor relations. It builds on agency theory to explain the unique relationship between the corporation, its management, and its shareholders. It applies research based on social network theory to explain the importance of relationships – both strong and weak ties – on capital markets. It delves into concepts such as social capital and trust. The chapter explains the boundary spanning role of financial communication and investor relations. Finally, it discusses insights from the relational approach to public relations and findings on dialog and symmetrical communication in the context of financial communication and investor relations.
