Service creation on communications with investors will allow not only to reduce volatility on stock quotations, but also to involve the new suitable companies of investors.
Activity on communications with investors (Investor Relations) is determined as the strategic function of corporate communications directed on informing of financially-investment community about a current condition of the company and prospects of its development. As this information essentially influences cost dynamics of shares the program on communications with investors directly will be connected with maintenance and increase in liquidity of securities of the company, its market capitalization as a whole.
Also it has been analyzed for what the companies organize service on communications with investors who becomes a successful link between the company and its shareholders, what place the IR-department in company structure should occupy.
For what is necessary IR?
In world practice by the primary goals of department on communications with investors are development of relations with the largest existing and potential investors, development of procedures and work coordination on disclosing of the information to investors, preparation of information materials for company management and participation in carrying out of presentations of the company at specialized conferences and during road-show.
Dana Smith the IR-manager of Open Society, supplements the task list of the given department on an example of the company is a leading of quarterly results of activity of the company and their disclosing; preparation of annual statements; interaction with shareholders and the organization of shareholders general meetings; interaction with financial analysts of investment companies, answers to their questions and explanatories to the reporting; preparation of materials for sessions of board of directors. Also the department performs interaction with representatives of the major shareholder (specificity of a capital structure of the company is that that 90,5 % of voting shares belong to one legal person).
Functions and tasks of IR-department of the companies also are extensive. The main task of command IR is the finding of the correct balance sheet between interests of shareholders and investors, and also creation of such information field in which investors accurately would understand risks of the company and could estimate correctly them that finally should develop and improve mutual relations with the western investors, — Dana explains.
For this purpose the IR-manager should understand strategy of development of the company accurately. From such manager the management expects development of IR concept what to do, in what direction to develop and what budget for this purpose is required. Except the report to investment community of the objective information about the companies, IR-department also performs constant monitoring of the analytical information on industry and competitors.
One more important task of IR-department is the analysis of existing base of investors and also attraction of new with a desirable profile. Frequently this task is performed by it independently, without the aid of external consultants.
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