Investor relations are very important for any and every company. To ensure that constituents are secure with their investment, a company has to maintain a strong and healthy relationship with them. Before someone invests in any firm, they want to know what their return will be on the investment. A firm has to communicate its strategies for reaching its goals with all its investors. Providing the proper information to them is just one aspect. Performance and company image are very important also, being a socially responsible corporation would attract more investors. When a company performs at top level,investors recognize it and are intrigued by it. They want to know that investing in your firm would be the best option for them if they want to make money. Making the price of your stocks reasonable also attracts investors. This allows them to purchase more shares, and again attracts more people.
There are numerous companies who make it top priority to build strong,lasting relationships with their investors. I visited the Apple webpage, where they had a page specifically for their investors. They have all of their stock prices along with recent news from within the company that investors would find interesting. This is Apple's way of acquiring investors and keeping them. They are making a conscious effort toward keeping strong relationships with investors. It's a strategic way to their company and seems to be working out well for them.
here is a link to the Apple website I am referring to.
There are numerous companies who make it top priority to build strong,lasting relationships with their investors. I visited the Apple webpage, where they had a page specifically for their investors. They have all of their stock prices along with recent news from within the company that investors would find interesting. This is Apple's way of acquiring investors and keeping them. They are making a conscious effort toward keeping strong relationships with investors. It's a strategic way to their company and seems to be working out well for them.
here is a link to the Apple website I am referring to.
I think Clarence, you are absolutely correct that before any party does any investments in the firm, they should make sure what their return will be on the investment. And then they should decide to go for such an investment that maximizes their return at some times in future.
ReplyDeleteUsually when we look at the history, the trend of investor relations bloomed in early 1950s. It started in the form of public relations function to communicate to the retail shareholders in a company. As a result of the process of rapid modernization, financial markets institutionalized in a quick span of time and viewers of financial background started feeling discontent in poorly and inexperienced publicists. As such investor relations moved rapidly under the supervision of a head of the management or in other words a CFO. Following this, financial skills and knowledge became the entry point on the job market for most of the interested and dedicated analysts. Today, due to the change in time, investor relations profession is viewed as the middle ground where usually the concept of public relations and the financial skills and expertise is combined to present a new era of investor relations to the 21st century.
I agree with the statement that publicly held companies need to rely on good relationship with investor, as it is a key for their sustainable growth and development. However, as seen in the past, companies, especially multinationals, have means and tools to arrange figures or mislead investors, to attract them, even when the company is facing a huge crisis. So regulations like Sabarnes-Oxles Act or organization such as the SEC are important to protect small investors or individuals with little knowledge in finance. Moreover, once again, the ethic of the company and its top management team plays a vital role to ensure reliability. Eventually more and more individuals assess companies according to their CSR involvement as explained above and this tendency will probably continue.
ReplyDeleteIt is very important for the companies to rely and take considerations for what the consumers are looking for, so that they can attract more and more investors. Just as Melanie said, companies are relying on this for the growth of the company. Apple as we saw in the article is doing just this. They are doing this by making sure that their website is nice and easy to use, and that it is attractive for their investors.
ReplyDeleteThis is so important to realize if you are an investor thinking about investing in a company, or if you are a company trying to attract investors.
I think it is very important for businesses to show investors that they truly do care about things. The company could possibly show investors what it does to protect the environment, or even how it helps out the community. In today's world I feel that it is important for businesses to show investors that they truly care. Businesses need to show that they really care about people, whether it is their employees, investors, or any other person for that matter. Obviously it is important for a company to do well financially, but that is not the only thing that matters anymore. It is more than just the numbers today, it is about the company's overall image and reputation.
ReplyDeleteAttracting investors, much like attracting consumers, is crucial to the success of any large organization. In doing so, companies must go an extra step to show that they practice what they preach. I think the link,to Apples website, provided in this post, is a great example showing what apple does to keep its investors in the loop of things. Under the heading "responsible supplier management", it's impressive to see that apple takes that extra step to ensure that the people it does business with take social responsibility just as serious as they do.
ReplyDeleteHow to prove that a company has good relationships with its investors? It is very difficult to sustain that relationship as more and more investors are not listening to what the top management of a company has said. Instead, they will investigate themselves about how the basic operations that the company has maintained and sustained, and how this value creating activities are going to grow in the future.
ReplyDeleteThe contemporary investors are well-equipped with the information from the internet, and they are going to acquire more and more information in the future. I will believe that the successful company will focus more on is operations, instead of giving empty talks.