The Case Study Of Listed Companies' Economic Consequences In Health Industry For Implementation Of IRM

Investor Relations Management(IRM)was born in the United States in the 1950s.After decades of development,IRM has developed rapidly in western countries and greatly enhanced the communication between listed companies and investors.With the introduction to China in the early 2000s,the overall level of IRM of China has been improved in some extent after years of development.However,there is still much room for development."Healthy China" has become the national strategy of our country.The health industry receives more and more attention and the industry scale continues to grow rapidly.Because of this rapid growth and as the livelihood and pillar industry of the national economy,it is more important to develop IRM in health industry.After studying the IRM of listed companies in health industry,this paper finds that the overall level of health industry is better than the average level of the securities market and it can offer some reference to other industries.On this basis,this paper selected Yunnan Baiyao as a case study and found that the level of company's IRM can influence proportion of institutional investors holding,analysts'follow-up situation,the liquidity of stock,company's Tobin's Q and company's profitability.It means that a good level of IRM can attract institutional investors,stabilize the stock liquidity and raise company's performance,which enhance the value of listed companies.In the end,the study put forward the following suggestions to listed companies in health industry based on the experience of case companies:establishing a scientific concept of investor relations management;strengthening the company's investor relations website;strengthening internal organization and system of IRM;emphasis on interaction with small and medium-sized investors.