Purpose: As a subfield of PR, Investor Relations (IR) evolved into a strategic communication function that focuses on the relationship between a company and its financial community and is jointly responsible for its success. Despite this significance, there is a lack of research. However, especially in the age of digitalization and an era characterized by changes and instabilities, a theoretical framework seems indispensable. Thus, the paper tries to fill this gap by proposing a first theoretical approach.
Theoretical approach and background: The paper reveals the central challenges, aims, and needs of IR arising from current challenges. Thus, it highlights the need for a specific theory in IR and ventures the first step in this direction.
Findings: By discussing the change and growth of IR, the paper depicts the need for IR-own theories. It shows the undeniable roots of IR in PR by matching common goals of IR and PR with existing PR theories. Consequently, it develops a communication theory of finance.
Originality and innovation: IR received little attention from communication science and PR so far. PR claims IR to be part of the discipline, and communication is a focal point of IR. However, there are no own theories regarding IR in communication and public relations research. This paper builds on the PR roots of IR and outlines the tenets and components of a first IR-specific theory.
