Investor Relations Management Correlation With Enterprise Value

Investor relations management first appeared in the United States. After decades ofdevelopment, investor relations management has formed a complete system in some Westerncountries led by the U.S. With the development of economic globalization and the technology,investor relations management is still evolving. Foreign studies state that the development ofinvestor relations management is an important mean to improve the quality of listedcompanies and the efficiency of the securities market. This is a mainstream research incorporate governance. Through the investor relations management, improving the quality ofinformation disclosure of listed companies can increase mutual trust between the companyand its investors, increasing investor satisfaction and loyalty, reducing financing costs andmaximizing the value of the company. The split share structure reform of China’s securitiesmarket in2005gave birth to the investor relations management development. Since then, theinvestor relations management has entered a stage of rapid development, and still in fullswing in China. Under the securities regulatory authorities and the joint efforts of the listedcompanies, a great deal of progress has been made. The China Securities RegulatoryCommission also considered it as an important aspect of the governance of listed companies.And investor relations management has been required the full implementation in the listedcompanies.This essay first studied about the relevant research literature at home and abroad. Afterreview the existing research results and practical experience of foreign, we analysis the stateof development of the management of investor relations, either in theory or in practice, has abig gap with the foreign. Second, we analyze the basis theory of investor relationsmanagement, and how investor relationship management activities affect value. Again，in theempirical part, using the Fifth Annual Meeting of investor relations management inenterprises winning or not an important indicator of an enterprise as a measure of the level ofinvestor relations management. The essay creatively chose the protection of the interests ofinvestors indicators. This essay chooses a similar non-award-winning enterprise which has thesame asset size in the same industry as a comparison and use empirical research methods toexplore the relevance of investor relations management level of the enterprise value. It aims toprove that good investor relations management level of enterprises enhance the role of greatvalue and investors protection. Finally, some relevant recommendations are put forward onthe basic of the studies about development of investor relations management in China. The investor relations management has a great mean to the company. For the companygood investor relations management can further to improve the company’s governancestructure and the company’s stable funding sources, maintaining the company’s image in thecapital markets. For the capital market, a good investor relations management can make amore complete disclosure of information, and to strengthen the confidence of investors,waking up investors’ awareness of shareholders, to regulate the orderly operation of thecapital markets, too improve the efficiency of capital markets configuration. So the listedcompanies should strengthen their investor relations management awareness, and regard is asa strategic work. The securities regulators and government departments should also fullysupport the company to carry out the investor relations management and promote investorrelations management in all-round development of our country.