The Role of Investor Relations in Company Growth

There has never been a larger requirement for companies to have a strong relationship with their investors. The wealth of information available at our fingertips today would have been unfathomable 20 years ago.

Simply typing “ASX” into Google provided me with 81 million search results within 0.49 seconds, highlighting the fact that at no point in time previously has the market had a bigger appetite for knowledge than today. Investors and shareholders drive the growth and success of a company, and if they are not getting enough information, or if the information is unable to portray the full picture, then that will be reflected.

This is where Investor Relations comes in…

So what is Investor Relations?

Investor Relations is the sweet spot where finance, communication and marketing collide to assist the flow of information from a company to market participants. With a significant rise in the retail investor and increasing levels of investor activism expressing their opinions online, having accurate, current information available to the public is more important than ever.

The role of  investor relations services is to provide the market with information about a company’s current corporate activities and future growth plans.

Investor relations work to provide information on the company’s performance to the public in a timely fashion, maybe not 0.49 seconds, but in a time-efficient manner via the preparation of announcements, statutory reports, investor presentations and other marketing material. IR also supports the two-way communication pathways between the company and the investor, and when done well, may result in an improvement in investor sentiment (regardless of the company’s corporate performance, often investors simply want to be heard).

It is the overall goal of investor relations to promote investor confidence in the long-term future of the company, despite any positive or negative news that may occur, to facilitate growth and success for the company.

How will this impact growth in your company?

We have established that investor relations work to facilitate communication between a corporate client and the investment community. This is executed via multiple channels including ASX announcements and press releases, the company’s website, social media channels such as LinkedIn and Twitter, podcasts, investor roadshows and events, conferences, webinars and media (to name a few). It is through these communication pathways that investor relations can instil confidence with the investing community, providing accurate and complete information to drive the growth of the company.

This is important as it helps companies to establish and solidify their relationship with the public, nurture their relationships with shareholders and investors, while following regulations on how a company can share their financial information. Maintaining a healthy relationship with these stakeholders will not only aid in the maintenance of existing shareholders but act as a method to cultivate new investors suited to your company.

 

If you’re interested in learning more about the role of Investor Relations or are in need of an expert team who provide investor relations services, contact Investability today.

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