A Research On The Effect Of Listed Company's Investor Relationship Management On Investment Satisfaction

Financial crisis leads to incessant depression of global capital market and it is getting difficult for enterprises to survive. Under such circumstances, in order to obtain funds for supporting company's development, establishing the confidence of investors is concerned as an important and practical problem for managers of listed companies. Investor relationship management helps companies to win the valuable resources of investors, influencing companies'share price, lowering financing costs, increasing the companies'intangible assets and so on. Therefore, investor relationship management has become one of the most important research topics during the recent years. Previous studies showed that customer satisfaction has a positive effect on customer loyalty. While as a special customer of enterprise, investors satisfaction also decide whether financing could process smoothly or not. Although many scholars believe that investor relationship management plays an important role in obtaining investment satisfaction of investors, empirical study is rare in disclosing the relation between investor relationship management and investment satisfaction.This dissertation takes Listed Companies as the research subject. Based on the thoroughly literature review in this field, a model of building up investment satisfaction through investor relationship management is put forward. In order to make the research more comprehensive and innovative, following the concept of investor relationship, three stages of research work are conducted.First, on the basis of literature review and depth interview, the dissertation defines the concept of investor relationship management of Listed Company as the management that Listed companies in order to achieve the maximization of corporate value, integrated use the knowledge of financial, communication and marketing to maintain a dialogue with their investors and potential investors. The dissertation further specifies three investor relationship management dimensions:information disclosure, communication and public relations. Using the data of investors of listed companies, a reliable and valid three-dimension scale is developed.Second, based on Customer Satisfaction Theory and Transaction Cost Theory and Principal Agent Theory, the dissertation builds up a theoretical model, in which the three dimensions of investor relationship management influence investment satisfaction via governance structure and financial performance. And then the model is tested empirically. The results indicate that governance structure and financial performance are the most immediate antecedents of investment satisfaction. At the same time, governance structure also influences investment satisfaction via financial performance. Information disclosure and communication influence investment satisfaction via governance. While public relation not only influences investment satisfaction via financial performance, but also affects it directly.Finally, according to different categories of investors, the dissertation divides samples into two groups which compose of individual investors and institution investors, and examines the moderating effects of investor type to the relationship between investor relationship management and investor satisfaction respectively. After testing the theoretical model in the samples of different investor category, we conclude that the model is valid in different type of investors. By testing the differences of the path coefficients in different investor category, we draw the following conclusions. Information disclosure's influence has more influence on public relations in institution investors than in individual investors. The effects of information disclosure and communication have more effect on governance structure in institution investors, while governance structure has more effect on public relations in individual investors. Public relation has more effect on financial performance and investment satisfaction in individual investors. Governance structure has more effect on financial performance in institution investors. Financial performance has more effect on investment satisfaction in instituion investors. Governance structure has more effect on investment satisfaction in individual investors.The innovations of this dissertation are:(1) Based on the literature review and depth interview, the dissertation defines the concept of investor relationship management of listed company, and develops a reliable and valid multi-dimension scale using the data of investors of listed companies. The dissertation defines and measures investor relationship management of listed company from the perspective of investors'perception originally, which provides reference for other scholars to conduct similar studies and tools for managers to diagnose company's investor relationship management. (2) Based on Customer Satisfaction Theory and Transaction Cost Theory and Principal Agent Theory, the dissertation builds up a theoretical model, in which the three dimensions of investor relationship management influence investment satisfaction via governance structure and financial performance. The dissertation extends the studies on the drivers of investment satisfaction, which provides broader perspective for the scholars to see about the factors that influence investment satisfaction of listed company's investors. (3) Based on the former research, the dissertation divides samples into two groups which represents individual investors and institution investors, and examines the moderating effects of investor category to the relationship between investor relationship management and investment satisfaction respectively. The dissertation proves the validity of the theoretical model in different type of investors, which makes the driving effect of investor relationship management on investment satisfaction be understood more deeply and provides reference for listed company's investor relationship management.