The investor relations provide accurate and timely financial and managerial information about the firm to investors.
It is essential to learn everything there is to know about any firm before investing. These facts include the company's performance, its financial situation as seen in its financial statements, and, indeed, the governance practices of the corporate work environment. Users may gain organized knowledge about the organization's internal workings by examining these elements. Every firm approved and registered mostly on the Singaporean stock market must be honest about the information that describes their existence to the general public and potential investors under the new regulations developed by SGX (Singapore Exchange Board). The investor relations function gets carried out in this area. One of the crucial divisions of any publicly traded firm is ensuring that the rules established by higher authority get followed correctly. Their main responsibility is to notify everyone, including investors, of this vital information. Here is a more detailed description of what investor relations perform.
Understanding the meaning of Investor Relations
Every listed firm has a particular department called investor relations, or IR, which receives information from all other departments. It collects all of the information from executive management, marketing, finance, legal, compliance, and other departments and aggregates it into information investors can understand.
These businesses and their investor relations division have access to specific public domains, and they make the gathered data public for all current and future investors. Investors require this information to understand a company's operations and management thoroughly, and they are aided in their investment choices for that specific firm by these IR operations. The official website of a corporation may also provide access to these company-related insights. On their website, almost every publicly traded firm has a dedicated "Investor Relations" column that details all the pertinent information.
The link between a firm’s core administration and its prospective and current investors may get summed up as investor relations.
Importance Of Investor Relations for an Organization
A corporation must value its investors if it continues to grow and expand. To reiterate, investors would only reward businesses that are open and trustworthy with the facts they have offered. Only if a firm is genuine in what it presents to investors will it be appreciated. Investor relations are essential for retaining a dominant position in the market, coupled with maintaining the company's financial stability. Since an organization's investor relations department is thought of as the link between the firm but also its investors, it requires highly qualified personnel to handle matters. Investor relations are more crucial than ever since they influence a company's development, growth, and market success.
Top objectives of the investor relations
The investor relations team must accomplish various objectives to maintain the company's reputation and financial performance. They are crucial because they enable a business to reach its maximum capabilities as it grows and develops. Investor relations work in a way to accomplish these objectives. Let’s see some of those particular objectives:
• Keep the company's connection with investors open and honest so it may flourish over the long run.
• Assist the business in achieving the greatest share price on the market to improve performance and attract a devoted shareholder base.
• It establishes a connection between the company and the investors by presenting the firm's good points and communicating on their behalf to the company. If done correctly, this forges a solid connection that benefits both sides.
• It provides investors with accurate and timely financial and managerial information about the firm. It builds a solid professional connection and fosters the investors' feeling of trust.
• Offer other information, such as non-financial indicators, to support the company's values. Such non-financial information covers several topics, such as modifications to corporate governance guidelines and regulations.
• Enforcing and maintaining the numerous rules established by the Securities Commission as well as the authorities of the stock market. To align firm practices with the specified requirements.
• Supporting the company's sales using non-aggressive or indirect means. Promoting programs, including IPOs (Initial Public Offerings) and FPOs, fall under this category (Follow-on Public Offerings).
• In order to keep the firm and its board informed, investor relations must provide frequent input from the investor side.
• Supporting responsive capital markets that contribute money and finance to upcoming initiatives and plans.
