Investor relations management (abbreviated as IRM), sometimes referred to as investor relations (abbreviated as IR English) was born in the United States in late 1950s. The name has a broad sense. It includes not only the relations between listed companies (including proposed listed companies) and their shareholders, creditors and potential shareholders, but also the relations management between listed companies and various agents in capital market in the process of communication with investors.

 

Basic Principle of IR

 

The nature of investor relations management (IRM) is the company's continuous strategic management behavior

With “enterprise overall development” as objective, the corporate strategy bears the characteristics of globality, synthesis and systematicness.

As the corporate strategy is long-term, IRM is a long-term behavior of enterprises. With the gradual evolution of enterprise strategy, investor relations management needs to continuously introduce the business and development prospects to existing investors and potential investors to obtain their recognition of the company and the corporate strategy.

 

The objective of investor relations management (IRM) is to maximize the relative value of the company

 

Different from the value of the products and assets of the enterprise, the corporate value is not only the past and current value of the company reflected by the profit and net assets of the enterprise, but more important, is the future of the enterprise, the profitability and development potential on the past and current basis of the enterprise together with the expectation of the existing and potential investors towards enterprise.

 

The core of investor relations management (IRM) is through communication, to promote understanding and identification

 

The core of investor relations management is to promote the understanding and identification of the company through effective communication with investors. In the communication process, firstly, it should be noted that the company should take the investor relationship management as long-term perceptions and attitudes, keep equal, sincere and mutually respectful communication to gain the trust of investors; secondly, the company should pay attention to the way of communication and to improve the communication effects by capital marketing techniques.

 

The contents of communication in investor relations management (IRM) is related information affecting investor decision-making

 

Strict and standard information disclosure is the system guarantee for every shareholder to get equal right to know. Therefore, from the point of view of market supervision, the company should judge the disclosure of stock price sensitive information in form and substance according to relevant laws and regulations. In the management of investor relations, the contents of the communication between the company and the investors is the information related to the decision of the investors, not only the information required by the mandatory disclosure. Through this kind of communication, the company can understand the investor's cognition to the company on the one hand; on the other hand, it needs further judgment that which information may form the stock price sensitive information and need to be disclosed publicly.

 

The means of investor relations management (IRM) is financial marketing

 

The marketing of modern company mainly includes two aspects: product (service) marketing and financial marketing. The product (service) marketing object is the product or service of the company, and the audience are consumers to meet the needs of consumption or producers to meet the needs of production. The purpose of a consumer or producer to purchase a company's product or service is to achieve the effectiveness of a product or service. The advanced form of product (service) marketing is the marketing of the product (service) brand.

 

The objects of investor relations management (IRM) are the company's investors or potential investors.

 

The objects of investor relations management include investors and potential investors, and investors are divided into institutional investors and individual investors. Therefore, in the process of communication with investors, the company should also have emphasis on the communication with different kinds of investors.