Research On The Impact Of Investor Relationship Management Quality On Market Response To Annual Report Inquiry Letters

The regulatory method of inquiry letter has been applied in practice by the Shanghai and Shenzhen Stock Exchanges since 2014,which is of great significance in improving the regulatory method.Regulatory inquiry flexibly deals with the areas that are difficult to be covered by regulatory regulations in a non-penalty regulatory way,which has played a significant role in strengthening the quality of information disclosure of listed companies and standardizing the disclosure behavior.The annual report inquiry letter discussed in this paper is one of the ways of inquiry supervision.Because the annual report inquiry letter mostly involves important aspects of the company’s operation,most investors regard the company’s receipt of the annual report inquiry letter sent by the exchange as a "negative event",although it may only be that the listed company has forgotten to disclose some contents,but there is no problem with the company’s operation.If it is the latter,the company will have to bear the misunderstanding of investors,and even seriously affect the normal operation of the company.In order to reduce the occurrence of the "Oolong event",and also to prevent the enterprises with real problems from muddling through,investor relationship management plays a crucial role.As an act of strengthening information disclosure of listed companies,investor relationship management can make investors have a clearer and correct understanding of listed companies.At the same time,the connotation of investor relationship management is far more than information disclosure.Good investor relationship management can effectively maintain the image of listed companies in the minds of investors.This effect can play a "insurance effect" when a listed company encounters negative events,Avoid investors abandoning potential companies due to temporary bad news,reduce the negative impact of negative events and stabilize the market reaction of listed companies.This paper discusses whether the positive investor relationship management behavior of listed companies can reduce the negative impact of the "negative event" of the annual report inquiry letter and stabilize the market response of listed companies when they receive the annual report inquiry letter based on the above analysis,this paper mainly studies the relationship between investor relationship management and market reaction in negative events.The data selected in this paper is the data of A-share listed companies on the main board of the Shanghai and Shenzhen Stock Exchanges from 2019 to 2021.Based on the theories of agency theory,information transmission theory,corporate reputation theory,and price pressure hypothesis,this paper quantifies the data by constructing the index system of investor relationship management,quantifies the market response variables with the accumulated excess returns,and finally verifies the impact of investor relationship management on the market response through empirical analysis.After empirical analysis,this paper draws the following conclusions:(1)The inquiry letter event can indeed bring negative effects,specifically reflected in the market reaction of listed companies receiving the inquiry letter of the annual report before and after the disclosure date of the inquiry letter fluctuates greatly.(2)In listed companies with higher investor relationship management,the negative effect of inquiry letter has weakened,while in listed companies with lower investor relationship management level,the effect is relatively strong.(3)According to the information transmission theory,the impact of investor relationship management on market reaction is long-term effective,while according to the price pressure hypothesis,the effect relationship is only short-term effective,and it is invalid in the long run.According to the conclusion of the experiment,the relationship between investor relationship management and market reaction has not reversed in the future sample period,which also proves that the information transmission theory is correct,The improvement effect of investor relationship management on market response is long-term effective.Through this study,I hope that listed companies can pay more attention to investor relationship management,actively carry out voluntary information disclosure,improve the channel of information disclosure,and improve the quality of information disclosure;At the same time,the Exchange can enrich and improve the contents of the annual report inquiry letter to improve the effectiveness of inquiry supervision.