It’s that season of the year again or rallies of bombarding number-crunching announcements. Q3 earnings results from all over this side of the Peninsula and the globe are trying to publicize and sell stakeholders a story, their stories. Those stories may chant about how much money they made, how poorly they performed, or even give out solid hopes for a better year, next year. It is the last school report card that really matters until next grade or next financial year.
The investor relations landscape has become more important in Korea with sagging interest rates under the bloodshot eyes of many generations. Moreover, from investors to the general public, earnings results are not just another potential source of income, but also an outlook for next year’s economy. The investor relations platform touches all aspects of the business and its stakeholders, including vendors.
As long as you are online or even follow news the traditional way, you won’t be able to steer past these earnings results. Taking consideration the below pointers will hopefully provide you a more useful perspective on something that is actually consuming your time online.
- Presentation of performance, agenda, and hopes for next year.
Earnings results aim at primarily investors, potential investors, and the regulators (government). Q3 is particularly significant as it is the last school report card until next grade. It also takes part in showing off to the relevant industry the financial contribution it has made and perhaps giving signals of hopes for next year. It also provides investors a chance to evaluate whether the management did or did not strive to be the best as it promised throughout the financial year.
2. Public opportunity to explain why a company did not keep its promise
On the investor relations platform, the earnings results is also a great public speaking opportunity to explain its unsatisfactory performance or profits and what it will focus on to improve. For investors, such scenarios can highlight the quality of the current corporate governance or management. This line of events later can, at the extreme, lead to restructuring, which is one of the common gestures to investors.
3. Source of cohesion among employees, their families, and the general public
When the earnings results are being yelled out to the media, it is also being cascaded to the employees, whom are the key pillars of a company. On a management perspective, the messaging will foster impact on the employees, their families, and vendors. However, it can not only build cohesion and team building, but also send a sense of indignity.