Investor Relationship (IR), as implied by its name, is the relationship between investors and company management and it has manifold influences on business development and sustenance. IR is a fundamental marketing process in direct relation to company’s stock market, investors’ satisfaction, as well as it works as an analytical indicator to recognize the value formation metrics and business credibility of the company in the capital market. In one word IR contributes in generating professional reputation of a company, therefore, it is important to analyze the scope of enhancement of IR communication.
General Strategies For Maintaining IR
Attracting trust and attention of the investors, client advisors, and market analysts are vital for companies’ fiscal strength. This sustenance is possible when IR is properly monitored. In general, organizations should care about these issues for maintaining healthy IR quotient.
- Stay active and visible in market in terms of business
- The tone of corporate communication should be factual as maximum as possible but it is not safe to make promises at the initial stage of business development
- The strength of IR communication should be based on balance sheet and long-term goal of the organization
- Company must take adequate care of investors’ concerns
- Media relation and investor communication should be well coordinated
- The language of the corporate communication should be lucid, clear, and easy-to-understand by common people: IR management should consider the small and medium group of investors as well
Best Channels For IR Communication
Different communication channels are used for effective IR communication. However, prioritization of these channels depends on the customized investor relationship management strategy of an organization as decided by company management. However, at one go these channels are:
- Regular releasing stock exchange related announcements
- Regular posting of annual and quarterly reports for investors and shareholders
- Making corporate fact sheets, in the form of newsletter and magazines on behalf of the company
- Getting in close touch to investors either via phone or via one to one meeting where direct interaction can take place
- Company representations toward multiple investors
- Conference calls
- Webcasts and streaming of conferences call at regular basis for interactive communications
- Arranging road shows and meetings with investors
- Uploading and maintaining the corporate websites
- Regular publishing of press releases and other newsletters on behalf of the company
- Maintaining smooth, formal, and regular relation with media
The above-mentioned channels can successfully streamline IR communication and ultimately help in adding reliability and transparency in the business character of a company.
Job Responsibilities Of An IR Professional
Job responsibilities of an IR professional are versatile and manifold. The IR officer of a company deals with top notch level of management, and typically his reporting authority remains CEO or CFO. The routine responsibilities of an IR professional includes:
- Managing and proper channeling of corporate massage for better integration of company administration
- Formation and execution of policies for corporate disclosure of the organization’s policies
- Interacting with media, investors, and market analysis’s about the business performance of the company
- Planning for corporate presentations
- Generating and releasing earning and annual reports
- Providing regular inputs to senior management as well as board of directors about investor’s compliance
- Formation of IR strategy for business progress and excellent fund management
Presently, IR management has become more strategic and result-oriented. What was limited before in handling release of financial updates of company to investors, now has become a complex way of dealing with:
- Stock price
- Shareholders’ mix
- Ratings of analysts
- Financial metrics
Proper coordination and analysis are the buzzwords now for enhancing the impact of IR communication, and achieving this all round result is the professional expertise of an IR professional.
Nitin Lahoti is the Co-Founder and Director at Mobisoft Infotech. He has 14 years of experience in Design, Business Development and Startups. His expertise is in Product Ideation, UX/UI design, Startup consulting and mentoring. He prefers business readings and loves traveling.