Analysis Of Factors Restricting Chinese Listed Company's IRM

Investor Relations Management (or to say Investor Relations) as to Chinese Listed companies is still the comparatively unfamiliar object. It sprung up to the developed market economy country, and was the typical result of the market economy. It means in order to increase the company value and maximize shareholders' interests, listed companies that by means of the different measures establish and strengthen contact and communication together with investors (consist of existing and latent individual investors, institutional investors and investment analysts), make good mutual relationships with investors and attempt to establish and enhance the identity of good credit. Therefore, IRM is a significant part of corporate strategy management. So the study on this object carried by Chinese listed companies has especially realistic significances.With the development for about 13 years, China's securities market has made great progress. There are more than 1300 listed companies that play a more and more important role in China's national economy in two stock exchanges. But we should realize that listed companies' development is restricted by many factors such as faulty market system incomplete laws, unsound corporate governance and so on. As a result, listed companies are in the status of bad quality and lack of credit, which spoiled investors' confidence deeply. IRM is considered a very important way to resolve the above problems and to accelerate securities market development, so it has been spreading positively among listed companies by the supervision department from the year of 2002. But on the basis of the study on the status quo of IRM carried by Chinese listed companies, the author found it is in a poor way. And then the author made the further analysis of the general reasons such as commercial culture, equity structure and regulations after the reviewing the rising and development history of IRM in foreign coutries.The author believes the reasons mentioned above are the problems of universality in Chinese market. For listed company, it is an economic unit firstly. So the original economic interests incentive is the direct reason restricting IRM weakly carried by Chinese listed companies. Based on such consideration, the author pointed out that the incompatible relationships between costs and income of IRM is the prime reason.Above on the analysis, the author put forward some advice for the further development of IRM in Chinese listed companies and wishs the study will have referenced effects for both listed company and monitoring sections.