Listed firms’ value depends on sustained investor relationship building.

Evidence

That was, I guess, part of the problem that you had a large number of US companies come and list over here. The management didn’t spend time by coming, frankly, to visit investors. They came over twice a year and they didn’t commit a significant amount of time to building relationships, building long-term relationships. And so when the going gets tough they’ve got nothing to fall back on. So there’s a kind of mentality now which is why are these companies coming to list over here and they’ve got to have very, very sound reasons that they want to have and then they have to make sure they commit to coming over here very regularly. (Broker G, June 28, 2012) As this quote shows, value cannot be reduced to the biological, lively, embodied, or material qualities of commodities. — Kean Birch, Rethinking Value in the Bio-economy, 101

Categorization

• XREF: Direct evidence for the assetization claim that value is performed through relational practices like investor relations, not intrinsic to the underlying asset. — connects to: Intangible asset value is constituted by intermediary actors who represent investors. — Kean Birch, Rethinking Value in the Bio-economy:…, 83; Cost-driven market ties evolve into trust-laden partnerships over time; Purely profit-driven relationships test the minimal conditions of encapsulated-interest trust. — Russell Hardin, Trust and Trustworthiness, 58 (+6 more)

Related

• Building trust costs firms real resources, but distrust costs more. (similarity 0.79)

Broader Connections

• Cost-driven market ties evolve into trust-laden partnerships over time #corroborates (0.85)
• A continuing relationship functions as a bond deterring dishonest trading #corroborates (0.85)
• Thick-relationship trust is a special case of encapsulated interest #expands (0.85)
• Client firms test subcontractor trustworthiness through staged contract commitments over years. #exemplifies (0.80) — Diego Gambetta, Trust - Making and Breaking Cooperative…, 2613
• Building trust costs firms real resources, but distrust costs more. #expands (0.80) — Diego Gambetta, Trust - Making and Breaking Cooperative…, 2633
• Reputation-building is a deliberate investment of foregone gains #corroborates (0.80)
• Purely profit-driven relationships test the minimal conditions of encapsulated-interest trust. #complicates (0.75) — Russell Hardin, Trust and Trustworthiness, 58
• Corporate raiders acquired firms via shareholder control, leveraged debt, and asset stripping #qualifies (0.75) — Andrew deWaard, Derivative Media, 238