Investor Perception Survey

Investor perception surveys are used by leading companies in all industries. But do they meet their intended goal of giving management/the board greater insight into what investors/analysts really think?

The answer, in my opinion, is no if the survey consists largely of questions that ask the audience to use scale-based ratings (i.e. what do you think of management on a scale of 1-5). Such surveys sound enticing. After all, what executive doesn’t want to say “my rating was 4.5, one full percentage point above the benchmark.”

In reality, however, it is the anecdotal information, found in conversations and replayed in direct quotes in qualitative investor surveys, that provide the greatest insight.

Getting this kind of information is not easy. It requires the formation of direct and insightful questions and careful probing by an informed, independent surveyor. But it is well worth the effort for companies that really want to know where they stand with owners and advisors.