Dissertation
Dissertation > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods

Investor Relations Management, Stock Liquidity and Capital Cost

Author LiMingWang
Tutor WanXiaoWen
School
Course Accounting
Keywords Investor Relations Management Stock Liquidity The Cost of Capital Analyst Tracking
CLC F224
Type Master's thesis
Year 2012
Downloads 72
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Investor Relations management originated in the Western developed capitalmarkets. As an important strategic activities of enterprises, IRM use the means offinance, public relations and marketing, describe the company operating status anddevelopment prospects to investors and potential investors by information disclosureand communication. The good investor relations can have a positive impact on firmvalue and capital costs.In the macro level, the investor relations management can improve the capitalmarket pricing mechanism, and optimizie the configuration of the capital market; Inthe micro level, the investor relationship management can enhance investorconfidence in listed companies, and help investors take the formation of shareholderawareness.The mandatory disclosure can increase the transparency of the company toachieve the purpose of protecting the interests of investors.Listed companies can thusbroaden the financing channels and lower financing costs, and get investors to higherloyalty of long-term support.Along with the progressive development and improvement of China’s capitalmarket, especially in circulation after the split share structure reform, as an effectivemeans of the company to create shareholder value, to protect the interests of investorsand strengthen of communication and information intermediation, investor relationsmanagement is increasingly receive the concern of the government regulatoryagencies and listed companies. Development of network technology enable investorsrelationship management can run fast, convenient and efficient. The network hasbecome the enterprises and investors exchange platform. Score data on themanagement of listed companies in investor relations is entirely from the network, itcan behalf of the company’s investor relations management level.Based on relevant theory and previous literature, Investor relations managementcan have a positive impact on stock liquidity and capital costs. The paper is Based onthe listed company’s Web site to establish the investor relations managementevaluation, and improve foreign empirical model. The empirical results show that thecompany’s investor relations management can increase stock liquidity, and the abilityto increase the number of analysts tracking. Due to investor relations affect a certainlag and the lack of longitudinal data, empirical results of capital cost have nonesignificant, so the investor relations management issues more in-depth study.

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