Title

Risk, Uncertainty, and Message Convergence: Toward a Theory of Financial Communication

Document Type

Article

Publication Date

9-22-2017

Department

Communication Studies

Abstract

Risk is inherent in financial markets, and the accompanying uncertainty must be managed and navigated by stakeholders making financial decisions. Despite pervasive scholarship positioning stakeholders as rational actors when managing risks, we argue that people become more quasi‐logical when making decisions. Additionally, we argue that risks are cogenerated, and that current theoretical frameworks do not fully explore this notion. Specifically, we discuss the social amplification of risk framework (SARF), which focuses on ways individuals amplify or attenuate risk perceptions through social processes. However, we argue that SARF could be complemented by the addition of the message convergence framework, which focuses on ways that arguments interact in the minds of stakeholders. The chapter concludes with recommendations in message design for financial communication practitioners and for decision‐makers who navigate economic risks.

Publication Title

The Handbook of Financial Communication and Investor Relations

First Page

33

Last Page

43

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