HCC2123 -

CORPORATE
COMMUNICATION

Volume 07:
Investor Relations
 What is Investor Relations?

Investor relations is the term used to describe the ongoing activity of companies
communicating with the investment community.

While the communication that quoted companies undertake is a mix of regulatory and
voluntary activities, investor relations is essentially the part of stock market life that sees
companies interacting with existing shareholders, potential investors, analysts and journalists.

Many forms, for example, meetings with investors, company news-releases, annual reports
and websites.

The commonality however, is that each of the communication tools that companies utilize are
designed to inform stakeholders about the company, so that they can gain a greater
understanding about the company’s business.

Investor relations is a dialogue and is as much about companies explaining their business to
the investment community as it is about companies listening to the views and feedback from
that very group
Why Commit to Investor Relations?

Ensure that
expectations of the
company stock Reduce stock price
Explain company price are volatility
vision appropriate for its (instability)
earnings prospects,
the industry outlook
and the economy
 CIRS
Institutional
Investors
Investors
Individual
Investors
Company Investor
Relation Strategy
The Media

Intermediaries Rating
(Mediators) Agencies

Analysts
 Institutional Investors

An organization that Institutional investors

trades securities in large face fewer protective
enough share quantities regulations because it is
or dollar amounts that assumed that they are
they qualify for more knowledgeable
preferential treatment and better able to
and lower commissions. protect themselves.
Individual Investors

Reaching Can communicate

individuals is more through direct mail Customers,
difficult as they to affinity groups employees,
are numerous and or generated suppliers and
harder to identify through the media individuals.
and advertising
Individual Investors
 Media
Broadcast

Financial television stations

Print

Television and radio stations with

Financial
Newsletters newspapers financial news

On-line/New media
Sector trade press National
newspapers

Newswires

Financial/investment Regional
magazines newspapers
Financial websites

Blogs
Rating Agencies

Make their rating

available to the
public through their
Analyze company ratings information
in much same ways desk and
with analyst but published reports.
with much focus on
their
creditworthiness.
 Analysts

Cover stocks within Analyst reports IR officers should

certain industries often used by Analysts an also be prepared to
and generate institutional investors important conduit communicate
detailed research to help them with constituency for a strategically and
reports that offer their investment company IR handle downgrades
buy, sell or hold decisions. strategy. from analyst with a
recommendations. communication plan.
 Using IR to Add Value
Proactive IR can go beyond
The investor relations traditional analyst calls.
functions assumes a Plant tours and meeting or
marketing role with respect lunches with key company
to a company stock which executives can provide
involve much more than investors and potential
producing and distributing investors with a true feel for
annual and quarterly the company and its
reports. management.

IR targets investors to
market company shares to
and provides regular
informational updates and
explanations of
performance to the
marketplace.
When a crisis hits, or company undergoes such structural
change that the market reacts negatively, and investors
have already lost money, IR professionals should
proactively communicate to analysts and investors what
management is doing about the situation.

Management must identify the problem, what caused it

and importantly what it is doing to address it.

To ensure that shareholders do not sell, companies must be

prepared with swift, honest communication to investors.
#ynwa #doabuatMalaysia #doabuatGaza

 To be continued…………………………………

 in Volume 08

Thanks!