To emphasise the important role of financial communication strategies implemented by companies during critical public share issues and identify their main characteristics.
A review of the available literature on the subject (1991‐2003) describes the risks brought about by public share issues, the main roles of the financial communication strategy and its targets. A qualitative investigation conducted in Belgian bank companies (by interviews) details the different financial communication strategies implemented during mergers and acquisitions.
Financial communication is not only concerned with financial figures and data, but has also a specific role in building the company's image, reputation and confidence. This is particularly true in case of mergers and acquisitions since these events can strongly affect the company's identity. Internal as well as external communications have to be considered. Some managerial implications are proposed.
The investigation was conducted in Belgian bank companies, which are not necessarily representative of the practices in other countries. Quantitative studies should be conducted in order to isolate impact of financial communication on mergers and acquisitions success.
An interesting approach of financial communication and a description of its role in reducing the risks brought about during critical public share issues such as mergers and acquisitions.
Financial communication is less developed than the other types of communications, but is quite so important. This paper contributes to a better understanding of the role of the financial communication as part of the global communication strategy.
