A case study of investor relations at Lowe's Companies, Inc.

This exploratory case study examined developments in investor relations and annual reporting since 1960 and also examined the specific practices of Lowe's Companies, Inc., from the time it became a public company in 1961.

Data were gathered through a series of interviews with the investor relations staff of Lowe's and an examination of company documents.

Investor relations at Lowe's developed under the direction of Robert Strickland, the company's current chairman of the board. The investor relations department initiates commianication with the investment community and openly discusses the company through the annual report and through verbal communication.

One main objective of an investor relations program is to maintain an efficient valuation of a company through communication. The staff at Lowe's explained the purpose of investor relations and annual reporting as aiding in lowering the company's cost of capital by increasing awareness and reducing the perceived risk to investors.

This study suggests that a company can significantly contribute to its efficient valuation by initiating and maintaining communication with the investment community. It also suggests that a communications-oriented top management is important to the effectiveness of an investor relations program.