The Study Of The Impact Of Investor Relations Management On Market Value Management Of The Listed Companies Based On Listed Companies In Zhejiang Province

After decades of development in mature capital markets, investor relationsmanagement has been relatively perfect and self-contained on the laws,regulations,evaluation and management tools and so on since the emerged. But for Chinese listedcompanies, investor relations management is still a new thing.From the promotion ofthe introduction of the concept into practice, the guidance from the regulatoryauthorities to support listed companies, Investor relations management experienced asplit share structure reform in a time of less than10years, with a new mission anddevelopment space in the circulation times: To maximize the company’s marketcapitalization and shareholder value.Through the Survey of investor relations management status of the listedcompanies in Zhejiang Province, we found that the overall level of performance isgood, but individual differences are more significant. On the level of informationdisclosure, mandatory information disclosure significantly higher than the level ofvoluntary information disclosure level. From the investor support dimension indicators,it shows that the communication channels did not fully open between the listedcompanies with investors, and channels of communication are more narrow and theinvestors of interactive communication is not timely. These problems will reduce theinvestors’ awareness and acceptance of the company, leading to the company’s marketvalue is underestimated, Intrinsic value could not be fully display, and its developmentwill be buried hidden trouble in long-term.In this paper, firstly we sort out the summary of domestic and foreign about theinvestor relationship management literature.Secondly, based on the theory ofasymmetric information, principal-agent theory, theory of investor protection andmarket value management theory, the paper summarizes the meaning of investorrelations management and capitalization management, constituting a fundamental partof this theory. This paper selects the listed companies of Shanghai and Shenzhen StockExchange in Zhejiang province from2009to2011，testing whether there is thecorrelation between the investor relations management with the market valuemanagement. The result shows that: Investor Relations Management was positivelyrelated to the market value management, it means that effective investor relationsmanagement can maximize the creation of the company’s intrinsic value and achieve the value of the company to optimize. Its better to value (MV) significantly higherlevel of investor relationship management (IRMI≥0.6701) sample companies. Butit has not been reflected in the value realization.In order to further improve the positive role of investor relations managementspending in market value management, this paper puts forward some policysuggestions. First of all, the government can improve the relevant legal system andestablish the industry self-regulatory organizations. Secondly, establish a unifiedevaluation system to measure investor relations management level, and guide theinvestor relations management work. Thirdly, the listed companies should set up theIRM departments and develop appropriate management systems, building the suitableinvestor relations management system, strengthening the voluntary disclosure ofinformation to broaden communication channels with investors at the same time.