Specialist Small Caps PR, www.smallcapspr.com, has released findings from research undertaken on 50 Australian small caps over three months.
CANBERRA, ACT, AUSTRALIA, July 18, 2018 /EINPresswire.com/ — Small Caps are under-researched, under-invested, and under-valued. They are too small for the
large investment banks and fund managers to deploy their expensive resources.
Therefore, it is crucial that small cap companies are proactive in increasing their profile via marketing
and public relations. It is not enough to rely on investor relations.
Small cap companies must actively promote themselves to the investment community, potential shareholders and the general business community.
The research analysed 50 Australian small caps which were separated into three groups.
Group one undertook a media relations campaign where they were featured in high profile financial and
business publications in Australia and internationally.
Group two focused on social media including Linkedin, Facebook, Twitter and shares forums such as
Hot Copper and Share Café.
Group three didn’t undertake any marketing campaign.
The results were as anticipated with Group One which undertook a media campaign increasing their share price by an average of 25 per cent and a number of the group increased to 30 per cent.
Group two which utilised social media had an average increase in share price of 18 per cent during the campaign.
Group three which did not undertake any type of marketing campaign during the six months had little or no increase company share price.
Group one and two increased their profile and reputation, creating a strong brand.
“Our analysis shows that companies that own what we define as a strong brand have consistently higher share prices and are less affected by stock market turbulence.” states principal Louise Elyse
It has been demonstrated in research studies that a good corporate reputation, considered an intangible asset, brings considerable benefits to a small cap company.
According to Forbes Magazine intangible assets account for as much as 75% of a public
company’s market capitalisation.
Research indicates that positive perception of a company by the broader public can result in at least
four favorable outcomes: lower cost of capital, an ability to attract new investors, increased market capitalisation and stronger resistance to volatility.
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Source: EIN Presswire