The impact of a good communications policy is difficult to measure. The aim should be to provide investors with as much visibility as possible over future results and the strategy followed, in order to avoid any bad surprises which are always heavily sanctioned by the stock markets.

A good communications policy will thus reduce the risk premium slightly, but this is very difficult to measure, except in extreme cases like Michelin, which despite its simplicity (single product) is seriously lacking in transparency, which is one of the factors underlying a higher than average beta (1.25) and a higher cost of equity.

For more information, see chapter 26 of the Vernimmen.