IPO Non-Financial Factors Influencing the Investors Decisions
IPO Non-Financial Factors Influencing the Investors Decisions

Author(s): Andrea Krýslová
Subject(s): Business Economy / Management, Governance, Accounting - Business Administration
Published by: Masarykova univerzita nakladatelství
Keywords: Corporate Governance; investor decisions; IPO; non-financial factors;
Summary/Abstract: This article describes the impact of non-financial factors on investor decisionmaking. The range of economic capital needs a funding system that is tailored to the requirements of the new context. The IPO decision is an essential strategic decision that needs to be seen from several angles of view. This article brings new point of view through non-financial factors. The entry into the stock exchange establishes the relationship between the company and a number of institutional and minor shareholders and here is the time to consider meaning of non-financial factors. The relationship between companies and investors need to be solve with the appropriate sense and knowledge about factors, that play the key role in the investors decisions. With the everincreasing range of global investment opportunities, companies need to focus on building long-term investor relations based on trust and regular communication. Non-financial factors are thus one of the central points of this demanding process. High standards of the company and its quality management will significantly contribute to its long-term performance. The goal of the article is to confirm, that companies that develop their skills in non-financial areas, such as value creation, management enhancement, environmental care, and those who can demonstrate their performance through comprehensive reporting, will be much more attractive to investors than companies that are currently learning or have not yet done so. This article is focused in detail on the factors that influence investor decision-making and its inference is, that impeccable analysis of nonfinancial factors and its proper implementation can move company into the next successful phase of building its financial future.

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