Research On Investor Relations Management For Listed Companies

Along with China's dramatic improvement in economic integration and financial globalization,listed companies in China are facing an even more complicated situation.On the one hand,global capital markets are getting more standardized,market-oriented and institutionalized.One the other hand,the internalization of RMB,China's entry to MSCI emerging markets benchmark and establishment of cross-market bond exchange bring out severer challenges to listed companies.The ability of listed companies to manage investor relations directly affects companies'market value,and has vital influence on healthy and consistent development of financial markets.Investor relations management(IRM)is based on information disclosure.Through improving the quality of information disclosure,companies can enhance their IRM level.For example,more active information disclosure promotes investors' better understanding towards companies.Effective communication between management and investors could efficiently reduce financing cost,promote companies' value and have positive significance for the long-term,consistent and healthy development of the whole society.Due to the internationalization of RMB,the Chinese stock market being brought into the hands of MSCI and bond exchanges,listed companies are facing a complicated situation.How to manage investor relations becomes a critical issue.This paper is dedicated to research on investor relations management's effects on market value.This paper has been organized in the following way.In the beginning,the concept and theoretical basis of IRM will be introduced and then it discusses the impact of IRM on the enterprise value by analyzing the relationship among shareholders,management,analysts and investors in the eco-economy system.Through this discussion,effective IRM strategies are revealed and thus,the company's market value is maximized.What is more,an example of IRM of Shandong Gold,a listed company,will be discussed,to illustrate what listed companies should do to manage market value through investor relations management.Finally the paper will show that there are certain impacts of investor relations management on the value of listed companies in China by considering case studies and empirical studies,and draw a conclusion that effective management of investor relations is an important way to enhance the social impact and corporate value of enterprises.Moreover,we hope that listed companies could be positively affected by this paper and suggest them that it could be important to pay more attention to the management of investor relations.