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Disruption in the Market for Information MiFID II and Investor Relations (PUB).pdf (820.52 kB)

Disruption in the market for information: MiFID II and investor relations

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journal contribution
posted on 2024-04-23, 14:00 authored by Subhash Abhayawansa, Mark Aleksanyan, Kenneth LeeKenneth Lee

Our study addresses the complex processes by which actors in the market for information reposition  themselves  and recalibrate  their  work  in  response  the  introduction  of  the Markets in Financial Instruments Directive (MiFID) II, which regulated a wide range of issues on information flows and payments for research in capital markets. Using interviews and surveys of UK investor relations (IR) professionals we explore how the activities and practices of IR professionals, and their relations with sell-side analysts and investors, have changed. We find that the operational processes within the market for information have been materially disrupted and observe an increase in the importance and relevance of the IR function both internally (within their organizations) and externally (in the field of investment advice). We provide  evidence  of  extensive  ‘jostling  for position’  in  the  field  which  is  perceived  to  have  resulted  in the (at least partial) disintermediation of the sell-side and increased direct ‘interlocking’ of investors and IR professionals in their engagement and information communication practices. We report on a changing information market paradigm (sequencing of communication) - where the traditional information and relational intermediation roles of sell-side analysts are now increasingly contested and assumed by IR professionals.

Funding

London School of Economics’ research fund

Observatory research hub at the University of Glasgow

History

School

  • Loughborough Business School

Published in

European Accounting Review

Publisher

Informa UK Limited, trading as Taylor & Francis Group

Version

  • VoR (Version of Record)

Rights holder

© The Author(s)

Publisher statement

This is an Open Access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Acceptance date

2024-03-28

Publication date

2024-04-22

Copyright date

2024

ISSN

0963-8180

eISSN

1468-4497

Language

  • en

Depositor

Dr Ken Lee. Deposit date: 23 April 2024

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