A Case Analysis On Investor Relations Management Of Shuanghui Using "Hudongyi"

Investor relations management originated in the western developed capital market.It is an important strategic activity by using finance,public relations,marketing and other means of communication to show investors and potential investors the company's present operation situation and development prospects through the disclosure of information and interaction.Good investor relations can have a positive impact on the cost of capital and the value of the company.In the theory of information asymmetry,there is information asymmetry between listed companies and investors in the financial and non-financial information of listed companies.The existence of such a relationship is the main reason for the agency problem.An antidote against the disease will be the use of company's internal control,strengthen the exchange of information between them,in other words the investor relationship management.Along with the gradual development of China's capital market,investor relations management as the valid method of company to create shareholder value,protect the interests of investors,strengthen communication and information interaction,increasingly attract the attention of government supervision department and listed companies.The development of network technology makes the investor relations management run in fast,convenient and efficient manner.With the advantage of network communication with investors,the network has become the main platform for enterprises to communicate with investors.The launch of Shenzhen Stock Exchange “Hudongyi” listed companies and investors interactive platform provides a convenient and efficient communication channel for listed companies,investors,research institutions.Investors and research institutions can ask questions directly to the executives of listed companies on the production and company management,financial data,information announcement and so on.At the same time,it can be released on various media news and rumors for confirmation,can also be re-tweeted by Sina or micro-blog Tencent,let more investors concerned about this problem to understand related information.For listed companies,“Hudongyi” is not only a platform for communication with investors or to display the company's image,but also an effective tool for investor relations management.I choose Shuanghui Development as the research object to study their application of “Hudongyi” for the process and effect of investor relations management to conduct a comprehensive analysis.Firstly,from the capital structure of Shuanghui Development of small and medium-sized investors that occupies more and more important in the development of the status of Shuanghui shares,so the investor relations management of Shuanghui Development is very necessary.Secondly,the investors' inquiries in “Hudongyi” platform are collected and analyzed in three categories based on the introduction of the basic situation of the construction and operation status of Shuanghui Development on “Hudongyi” platform.Then,I analysis the benefit from the perspective of investors and Shuanghui Development using “Hudongyi” platform for investor relations management.In Shuanghui Development,investor relations management directly improve the timeliness of information disclosure.After effective management during a long period of time,Shuanghui Development attracts more institutional investors,and their cash flow increases,the final cost of capital is lower.In the perspective of Shuanghui Development investors,the concern of company information and participation in the company management convenience are improved directly.To a certain extent,investor confidence in Shuanghui Development has also been improved.Through the case analysis above,we can draw the conclusion and enlightenment.Firstly,for a listed company,by using the network interactive platform for investor relations management can improve the level of information disclosure.Listed company improves relations between companies and investors,improve cash flow,and ultimately reduce the cost of capital function.In contrast,the construction and operation of the network interactive platform for listed companies is not perfect actually and the importance of investor relations management needs to be strengthened.Therefore,the application of the interactive platform for investors in the case of “Hudongyi” for listed companies needs to be further used.From another perspective,in the actual execution of internet investor relations management there is still a certain gap between demand and reality,so we should gradually improve the construction site to meet the demand of listed company and investor.The conclusion of this paper can promote the application of network interactive platform of listed companies and offer recommendations for operation of investors interactive platform to improve,so as to promote the healthy development of investor relationship management in China to a certain extent.