Study On The Relation Between IRM And Corporate Value

Since the emergence of Investor Relations Management(IRM), after decades of development, IRM in western developed countries have been more perfect in laws and regulations, practices, evaluation indicators, internal institutions, industry associations as well as the means and create a set of complete system. Investor relations management in our country is in its infancy, and has achieved a certain score. After the reform of share rights structure, IRM has become the internal requirement and measures to enhance the level of corporate governance and maximize the corporate value.In 2003, China Securities Regulatory Commission put IRM as an important institution to improve the reform of corporate governance in publicly listed corporations. As to the capital market, IRM can help to strengthen the investors' consciousness as shareholder and the investor's confidence, to perfect the mechanism of the market pricing and to improve the disposing efficiency of the market. As to the publicly listed corporations, IRM has the function of perfecting structure of corporate governance, widening the company's financing channel, raising the financing price, reducing the financing cost and stabilizing the stock price. At the present stage of our country, the research of IRM has positive meanings in perfecting the capital market of our country and standardizing the development of the publicly listed corporations. On the basis of summarize the domestic and foreign literatures of IRM, This thesis investigate the status of Internet IRM of publicly listed corporations in Shandong province by structuring the index of IRM. In the section of empirical studies, I carry empirical studies on the investor relations management through P/B and other data of Chinese capital market. The results show that P/B has a positive relation with investor relations level only if the IRM level is higher(≥57.51),which means those who adopts active investor relations management have higher market value.IRM can help to enhance the market value of company. Because empirical studies use cross-section data in 2006, the lack of time series data, which can not conduct a longitudinal comparative analysis. In addition, investor relations management on the role of the corporate value would probably exist a certain time lag effect, the same because of the lack of longitudinal data, this assumption can not be confirmed.The study use direct and indirect investigation, normative study and empirical study. Combining the definition of IRM in home and overseas, I redefine IRM. In the empirical part, the study adopt corporate governance variable combining other control variable to study the relation between IRM and corporate value. IRM is the sign of maturity of capital market. Investor relations management is conducive to safeguarding the interests of investors, and enhance investor confidence in capital markets and shareholder awareness, enhance corporate value.