The role of financial communication in the development of listed companies : case study of Unibail and the adoption of the new tax regime applicable to listed real estate companies in France | |
| Author | Nguyen Phuong Chi |
| Call Number | AIT RSPR no.SM-03-116 |
| Subject(s) | Business communication--France Real estate business--France Real estate listing--France |
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-03-116 |
| Abstract | Nowadays, financial communication is more than ever a strategic tool, an integral part of corporate communication, especially in the context of great changes inside the company. The principal challenge of financial communication lies in its target audiences, which are roughly divided into two categories: the professionals and the public. The enormous difference among them in terms of information needs and capacity to understand well finance-related issues makes it difficult to ensure the quality of communication. The adoption of the new tax regime by Unibail, the leading real estate company in France, is an interesting example of the role that financial communication plays in the development of a listed company. The decision of Unibail to adopt the new tax regime applicable to Listed Real Estate Companies in France entailed a temporary decrease of the dividend. While business results were excellent, this reduction went against what shareholders expected naturally from the company. Neither was it what they often heard about the new tax regime, i.e. a higher payout level. Different from individual shareholders who were disappointed by the drop of dividends, investors worried more about the future of the company. As a matter of fact, dividend is believed to reflect the top management's forecast of the company's potential growth. A dividend's fall is hardly seen as a good sign for investors. In this context, unfavorable movements in the eco-political environment and the inherent difficulty of financial communication complicated further the tasks of Unibail's communicators. In order to face this problem, Unibail's financial communication department put into use consistent communication subjects and well-considered communication tools. These vectors lied within the scope of the company's long-term communication strategy: a direct communication towards institutional investors and financial analysts and an indirect communication via the press and financial advisers towards individual shareholders and the public. A relevant choice of the subjects to be communicated as well as a good use and control of communication techniques were the explanations for the success of Unibail 's financial communication in this case. |
| Year | 2003 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-03-116 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Broustail, Francois Joel |
| Examination Committee(s) | Truong Quang; Zimmermann, Willi |
| Scholarship Donor(s) | Government of France |
| Degree | Research report (M.Sc.) - Asian Institute of Technology, 2003 |