An Empirical Research Into The Influence Of IRM On Firm's Value

The investor relationship and the investor relationship management(IRM) are going with the capital market's forming and developing gradually. The investor relationship management is a new problem in corporate governance. It takes financial, communication and marketing methods to show the company's business condition and development prospects in detail to existing investors and potential investors.In recent years, the investor relationship management has been paid much attention to by the Chinese listed companies. But, our practice is focused on the simple simulation. How to make the Chinese listed companies pay much attention to practice good investor relationship management, and strength the investor's confidence, still a research lesson to solving.This paper introduces the investor relationship management's concept firstly, and then tries to emphasize the investor relationship management strategy and information communication. In reviewing the foreign investor relation management research results and practical experience, we know that China's investor relationship management is still in the primary stage, so there are many questions for discussion either of theory or practice. In the paper, on the base of comparing the connection between IRM and variables, we gained many utilizable variables.It is wanted to know whether Investor Relations Management level will affect the value of enterprise, and from the view of theory and literature this impact may be positive. This paper designs a website investor relations management index including two dimensions of disclosure and communication.The empirical results show that the listed companies in China to raise the value of Investor Relations Management can be helpful to the value. A company with a higher Investor Relations Management level will have a stronger profitability. For company with a higher Investor Relations Management level, the effect on the value of the company is more obvious. It notes that the value effect has relations with the Investor Relations Management level.At the present stage of our country, the research of investor relations management theory has positive meanings in perfecting the capital market of our country and standardizing the development of the listed company. As to the whole capital market, IRM can help to arouse the investors' consciousness as shareholders, to strengthen the investor's confidence, to perfect the mechanism of the market pricing and to improve the disposing efficiency of the market. As to the listed companies, IRM has the function of perfecting company's administration structure, widening the company's financing channel, raising the financing price, reducing the financing cost, managing the investor's expectancy, and stabilizing the stock price. So, this text puts forward the suggestion finally from the microcosmic and macroscopical aspects respectively to improve investor relations management level and strategic step of implementing investor's relation management of enterprises.We hope that the Chinese listed companies put the investor relationship management into practice positively and establish stability foundation for enhancing the value of the companies.