What is Investor Relations?

Investor Relations Management (IRM for short), sometimes also referred to as Investor Relations (IR for short) was born in the United States in the late 1950s. This name contains a fairly broad meaning. It It includes the management of the relationship between listed companies (including the companies to be listed) and shareholders, creditors and potential investors, as well as the management of relationships between listed companies and various intermediaries in the capital market during the communication with investors.

Investor Relations

Investor relations ranking

It is worth mentioning that the five major objects of investor relations in order of importance are: fund manager, buyer analyst, seller analyst, financial media, and high net worth individuals (retails). Institutional investors generally have their own team of analysts and have their own different investment strategies and preferences. Effective communication requires professional capital market knowledge and experience. The effect of using only public relations and mass communication thinking is limited. of. The role of financial media is more to influence retail investors, so the importance ranks behind buyers and sellers.

Investor Relations Practice

In terms of practice, those with more mature investor relations in US listed companies (including non-US companies listed in the US) usually appoint professional investor relations consultants to assist with daily and project-based work. Perennial daily work includes investor relations strategy formulation, company capital market positioning, investment highlights and story packaging, performance release conference call support, editorial editing for major event disclosure, roadshow support, maintenance of investor relations website and investor database , And accept investor inquiries and provide advice on crisis management. Project-based services include detailed shareholder structure analysis, investor feedback surveys (including conventional and specific topics such as mergers and acquisitions), and potential institutional investor lock-in and expansion plans. Generally, for newly listed companies, especially small and medium-capital companies, in order to better attract the interest of the capital market, the best practice standards of investor relations consulting firms (Best Practice), motivated professional services are generally used to increase their capital Competitiveness in the market; For companies that have been listed for many years, especially large-scale equity companies that are industry leaders, the internal investor relations team is relatively mature and can handle most of the daily work independently, so project services from professional consultants are generally used. Professional consultants' years of accumulated database and mature research methods can provide more accurate surveys, analysis and recommendations.