The Research On The Investor Relations Management, Cost Of Equity Caption And Non-efficient Investment

With the rapid development of the Chinese market, the listed companies and investors are playing an important role in the Chinese market. And the management of investor relations plays an important role in tying the two, so it gets more and more attention of people. In July 2003, the China securities regulatory commission put the investor relations management as an important system to promote the corporate governance to promote the reform of the governance of listed companies; In July 2005, in order to make the corporate governance structure and strengthen the communication between companies and investors better the China securities regulatory commission has issued guidance on the relationship between listed companies and investors. "Accordingly, there is no doubt the investor relations management is more and more important. In recent years, Chinese scholars have made a lot of research on the economic consequences of investor relations management, and have taken some important achievements. But there are few literature study IRM’s impact on investment efficiency from the perspective of equity capital cost.In this paper, in order to discover the influence paths of the efficiency of investment by the IRM, for example, the listed companies in China issued A share in the securities market, to explore how the equity capital cost influence the investor relations management on the investment efficiency. The purpose is through the empirical method to study the effect path of investor relations management as well as the economic consequences, and to provide reference of investor relations management system in the future. Using empirical regression method firstly, the paper discusses the relationship between IRM and the investment efficiency of listed companies, finding that the higher the level of IRM of listed companies, the higher the level of company’s investment; Secondly, the paper established a model of investor relations management and the model of the equity capital cost of listed companies and through the regression analysis it concluded that good IRM can reduce the cost of equity capital of listed companies; Lastly, using intervening variable the paper built a regression model among the IRM, the equity capital cost and the efficiency of investment and find that the company’s equity capital cost in investor relations management and investment behavior play a mediating role. On the other words, there is conduction mechanism among the three.