Research On The Influence Of Enterprise’s Financial Capability On Investor Relations Management

Investor relations management is the inevitable outcome of the development inthe capital market. At present, with gradually mature of China’s securities market, thegrowing number of listed companies, increasingly rich of the derivative financialinstrument. How to strengthen the management of investor relations management is adifficult problem in front of all the listed companies. There are many factors that caninfluence investor relations management. The current relevant research mainlyfocuses on corporate governance, ownership structure as well as other relevantinstitutional factors. Some research maybe focus on one aspect of financial capability,but the influence of financial capability on investor relations management systemdoes not go far enough made a good opportunity for our research.Article based on signaling theory, social capital theory, public relations theoryand financial flow theory as a guide, on the content, elements, function and so on ofinvestor relations management has carried on the thorough research. Then, the datacollection was carried out on the2011listed companies in Shenzhen, using factoranalysis to measure corporate profitability, shareholder profitability, cash flow abilityand growth ability. After that, we are building evaluation index of investor relationsmanagement, inspecting enterprise financial ability to affect listed companies’investor relations management. Empirical results indicate that the profitability of theinverted u-shaped relationship with investor relations management. Shareholdersprofitability, company size are positively correlated with investor relationsmanagement. Enterprise cash flow ability, financial leverage is negative correlatedwith investor relationship management. Enterprise growth ability, independentdirector proportion, professional committee setting, ownership concentration,proportion of state-owned shares, management equity percentage, issuing B shares, Hshares or other capital and investor relations management is not significant. Finally,the author of the article to the empirical results in the induction and analysis,combined with China’s listed companies’ investor relations management problems,put forward the policy suggestions to improve investor relations management level.