Empirical Research On The Determinants Of Investor Relations Management Of China's Listed Companies

Investor Relations Management (IRM) is a strategic management activity. The operating managements of a company use the principle of finance, marketing, Journalism and public relations to enhance the communication with the existing investors and the potential investors, disclose information sufficient to promote investors' understanding of the company, in order to receive the continued support of the investors and maximize the value of the company.IRM takes information disclosure and communication to promote the positive interaction between the listed companies and investors, set up the company's trustworthiness in the public investors to maximize the company' value and the interests of shareholders. With the development of China's securities market, more and more companies pay more attentions to IRM. IRM has a long development in developed countries, China1 listed companies know IRM relatively late, but the development of IRM in China does not slow. In order to study the determinants of IRM, the article adopts the combination of qualitative analysis and quantitative analysis, regulated research methods and empirical research methods. The article discusses the content, nature of IRM and the actuality of IRM of China' listed companies. At the same time, Based on the analysis of the actuality, problems and reasons of IRM of China' listed companies, the article chooses the listed companies in Shanghai Exchange in 2007 as a sample, and aims to find the determinants of investor relations level from company characteristic, ownership structure and corporate governance attributes by designing investor relations evaluation system in China listed companies. We find that leverage, profitability, the largest Shareholder ownership ratio, concentration of ownership, management ownership ratio and the presence of an audit committee and a remuneration committee is significant factor associated with the level of investor relations. The conclusion contribute to a better understanding of the determinant of IRM of China's listed companies, the article put forward some concrete measures in order to improve IRM, such as to set up the equity culture as the center of the shareholders, to improve relevant laws and regulations, to strengthen the internal organizations of IRM of the listed companies, to carry out long-term IRM activities.