An Imp Active Study On Investor Relations Management Of Listed Companies And Growth

Since2001, along with the rapid development of Chinese capital market, listedcompanies manipulated the market shares and minority stock holders suffered. Therehad frequently been accounting scandals about those listed companies. More and moreinvestors had lost faith in listed companies and stock market. This further led to adepressed stock market, also led to the difficult of hard financing of listed companies.So it was hard to listed companies to survive and grow up. Generally investors,managers and other stakeholders focused Chinese listed companies lived shortlives.Good investor relations management could enhance the financing capacity,reduce financing costs, reduce the negative impact to public, maintain a good corporateimage, and protect the investors. Whether enhancing investor relations management isimportant to growth became the focus of attention of small and medium-sized listedcompanies. This article aims to use empirical research on relationship between theinvestor relations management and growth, to find the relationship.In this paper, first of all is review of the literature and theoretical analyses. Thispaper studies manufacturing industry listed companies of the Shanghai StockExchange A-share from2006to2011, chooses IIRI evaluated by content analysis to beexplaining variable，growth evaluated from accounting performance and marketperformance to be explained variable. After that, a case study is given.It turns out that, better investor relations management, better the companyperformance. Efficient investor relations management can bring growth of listedcompanies. Further analysis shows that, the higher the volatility of the companyperformance, the less stable the growth. It means that the relationship between IRMand growth is temporary, the growth also is influenced by short time business risk. It isbecause that IRM late and laggard in China, so listed companies have no double visionand carry out IRM outwardly.At last, the paper gives three suggestions according to research conclusions.Firstly, establishing investor relations forum, setting up investor relations managementdepartment; secondly, establishing long term mechanisms to manage investor relations;thirdly, promoting the equity culture.