Members of the corporate C-suite are powerful and widely perceived communicators. Communication management research examines the role of the corporate communication function in facilitating the positioning of chief executive officers (CEO). The present study contributes to this research by extending the focus to another executive board member, the chief financial officer (CFO) and the domain of financial communication. It examines the role of the CFO in addressing financial audiences – compared to that of the CEO. It also analyzes the roles of the public relations (PR) and investor relations (IR) departments in facilitating CFO positioning.
This study is based on an interview study of eight IR and PR professionals and a survey of 106 heads of investor relations and financial communication experts from listed companies in Germany, Switzerland and Austria.
Findings show that CFOs are similarly visible in capital markets as CEOs. Their communicator roles differ according to task responsibilities, with CEOs focusing on strategy and CFOs conveying financial performance. While CEOs are more involved in press relations, CFOs focus on investor dialog. CFOs are less proactively positioned than CEOs. Also, CFOs are mostly positioned in the context of mandatory disclosure. PR departments influence CEO positioning more, while IR departments commonly report to the CFO. Communicator roles are rarely formally defined and are subject to the executives’ preferences, which encumbers strategic communication management.
This study is based on cross-sectional survey data, which are subject to self-selection. The examined markets represent advanced capital markets with strict disclosure requirements. Findings indicate a lack of formalization in CFO positioning in the context of financial communication. This study also highlights the need to examine C-suite positioning beyond the CEO and the PR department.
This study contributes to research on C-suite communication by extending the perspective beyond the CEO and public relations. It also contributes to communication management research by highlighting how resource allocation and establishing rules shape the management practices applied to C-suite positioning. Finally, it contributes to financial communication research by empirically exploring the CFO’s communicator role.
