Listed Companies' Information Disclosure Crisis: Roots & Pre-management

Investor Relation Management (shortened form: IRM or IR) was born in late 1950s, it's the creature of America's developed stock-holder's culture.This name includes comprehensive meanings, not only the relationship between listed companies and their stock holders, creditors, potential investors, but also the relationship management between listed companies and all kinds of agencies. In short, IR is a necessary tool for listed companies to build their images in the capital market.Decades of practice in America and other developed countries proves that, good IR operation can bring listed companies: cheaper financing cost, better stock liquidity and more just evaluation.As an embranchment of PR, China's IR is just at the elementary stage. We start to know IR since some large state-owned companies'listed offshore. During that process, large state-owned companies such as China Sinopec, China Mobile, China Telecom started to gain from IR and began to recognize the importance of the work. Other domestic listed companies also developed such works that could be recognized as IR. But in general IR is still at the elementary stage, many listed companies still don't know the real meaning of it and disregard their investors'rights regularly.A basic impression of such behavior is that list companies can't fulfill the obligation of information disclosure. Their information disclosure can't be in time, sufficiency and even falsehood.But such behaviors can't last long, when investors find the truth, they will give up the rigged company.This article focus on the problems appeared in listed companies'information disclosure as well as the deep-seated reasons. Try to find out a way to prevent such crisis and reduce the listed companies'lost.Because of limited time and energy, this article mainly use literature analysis and case study.