The Empirical Study Of Investor Relations Management、Investor Confidence And The Stock Returns

Investor relations management (IRM) in the western mature capitalist countries hasdeveloped into a relatively mature and rich field, but it has developed only a few decadesin our country. As an autonomous governance mechanism of corporate governance, IRMhas an important financial value in raising the stock liquidity, deducing the informationasymmetry between the outside investors and improving the analysts and media attention,even enhancing the value of the company. In the field of non-financial value such asenhancing the transparency of listed companies in the capital markets, improving thecompany’s reputation, increasing the investors’ loyalty and satisfaction, it also highlights animportant role. Therefore, IRM draws more and more attention by securities regulatoryauthorities and the listed companies, it also becomes gradually mature in China.Confidence is more important than gold, this wisdom is also effective if application inthe capital markets. The capital market ’s development in a country cannot leave the boostin the investor confidence, the financial crisis in2008caused severe trauma to our countrycapital market, after several years development, our country stock market began a slowrecovery, the investor confidence is gradually restored. Can investor relations managementenhance investor confidence? Can investor confidence become an intermediary variable ininfluencing the investor relations management and the stock returns? In this paper, wepresented certain assumptions through theoretical analysis, and build the IRM evaluationindex further, using the principal component analysis method to build investor confidence,and select all the data of a-share listed companies in2012as sample to do the empiricallytest. The studies have shown significant positive correlation between IRM and investorconfidence, investor confidence can improve company stock returns, and the higher thelevel of IRM, the more obvious investor confidence impact on stock returns. This studyenriches the research field of IRM, provides a new mechanism of the IRM effects on stockreturns, and has great significance to the development of IRM in China.