| Author: | Cai, Jin |
| Title: | An exploratory study of the effect of investor relations management on investors and analysts in Chinese A-share market |
| Advisors: | Wei, Steven (AF) Fan, Yangyang (AF) |
| Degree: | D.B.A. |
| Year: | 2020 |
| Subject: | Corporations -- Investor relations -- China Corporate governance -- China Hong Kong Polytechnic University -- Dissertations |
| Department: | Faculty of Business |
| Pages: | viii, 95 pages |
| Language: | English |
| Abstract: | Investor Relations Management (IRM) has become more and more important since 1980s for many firms and has become a professional function taking the responsibility of the peripheral part of the firm's chief financial officer. There have been some findings focusing on the relationship and relevance between effective IRM and analyst coverage, liquidity, institutional investors following, share price, market value, even cost of capital, previous research findings show that investor relations management reduces the information asymmetry, and increases institutional ownership. Throughout the global market, almost all of them are dominated by institutional investor. But in Chinese A-share market, it is still dominated by individual investors which accounted for more than 80% of trading volume in year 2018. Individual investors are good at short-term holding, lack of systematic understanding of the company itself and its industry characteristics. Because small and medium-sized investors are often limited by professional knowledge and information acquisition ability, and it is difficult to maintain communication and interaction with listed companies, listing companies always take analysts as one of the key targets to manage investor relations, they provide investment advice for institutions and individual investors in the form of predicting corporate profits and writing research reports. This brings with a result that listed companies would always pay more attention to institutional investors, analysts or media, but putting very few focuses and resources on individual investors. IRM is the bridge between insiders of a firm with outsiders, it's aiming to manage the communication between insiders which refer to management, and outsiders including analysts, current and potential investors, press and so on. On one hand, IRM helps outsiders to fully read and understand the companies, on the other hand, IRM also takes the responsibility of crisis management in listed companies. There are very few researches focusing on and investigating the relationship between IRM and investors/ analysts. This thesis aims to examine and test the effect of IRM on investors and analysts in A-share market in mainland China, by way of testing the effect of IR on investors' and analysts' reactions when firms making announcement for their earnings. The aim of this research is to identify the use of IRM in crisis management, and the need for improvement of IRM with individual investors in Chinese A-share market. Findings of this research are useful for listed companies in A-share market, which would provide the companies with reliable evidence that IRM is of great use in crisis management, and IRM with individual investors should be further improved. |
| Rights: | All rights reserved |
| Access: | restricted access |
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| File | Description | Size | Format | |
|---|---|---|---|---|
| 5013.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 589.7 kB | Adobe PDF | View/Open |
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