Investor Relationship Management

The number of information exposure has been increasing with the development of China's stock market, especially in recent years. Many listed companies do not provide the whole information that should disclose to investors. The behavior damages investors' benefits in total, especially for small stakeholders. So the relationship between investors and listed companies is always tense. In China, researches on Investor Relationship translated to practice very soon and Investor Relationship Management (IRM) became a necessary system for every listed company. Although the concept is rather new in China, IRM has become an important issue to discuss for government, regulation department, scholars and mediums. All these related parties have attended protecting investors' benefits and IRM.It is still a new area about the theoretical research on IRM, but we can take something from abroad. Since National Investor Relations Institute (NIRI) was founded, researches on IRM has been put forward with a big step. Many of the cases and frontier theories from abroad will help us understand IRM in our society. However, China also has its own characteristic different from other countries. My thesis combines the theories and China's practice to discuss IRM in China. The first part of this thesis introduces the concept of IRM and its history. The second part is theoretic analysis. The analysis, based on information economics theory and global data and cases, emphasizes on how managers and investors could communicate effectively. Here, I analyze the character of strategy from information communication in short-term and long run. And I further discuss the relationship between strategic communication, restriction of information communication and corporate strategic credibility in long run. At last, through the view of IRM history in developed capital market, I point out the status quo in china capital market and its problem, and how to develop it under the background of globalization and technology development.There is enormous literature abroad in IRM issue, some of which model the problem with the view of asymmetric information. The innovation of this paper is that I put an emphasis on the character of information strategic communication and transfer between the managers and investors, basing on the asymmetric information problem in the Principal-Agent relationship. Then, I extend the analysis to the delegation and information communication issue based on the reputation mechanism in the long run.