Investor Relations (IR)has become an essential and indispensible arm for any company that is trying to raise capital in order to sustain its operations and maintain profitability in the extremely competitive website. No longer are the days when investors had to hold on the phone line or wait for a letter in the mail in order to get hold of or obtain a reply from an IR representative to get the information on their stock holding. With the increase in usage and innovation in the communications tools, investors are looking to get instantaneous information from companies in order to maintain their holdings or just spin them off their portfolios at the slightest change in their performance. Moreover, with the current economic crisis firms have to constantly communicate and engage their investors in order to get their attention and get their much needed financial support. Companies are realizing the importance of reaching out to investors and are making every effort to get their attention by using the latest platforms of engagement such as blogs, website, email lists, and other social network sites like Facebook, Twitter etc. which have gained such immense popularity that companies have started maintaining a dedicated team to actually update contents and reply to blogposts within minimum timeframe. This also affirms among the investors; a trust that the company is speaking to them just like a real person.
Another key tool used by companies is the increased use of webcasts, which record the actual meeting between the management, analysts, investors and stockholders and is uploaded on the company’s website so as to provide the latest buzz about the company from the CEO or Chairman (i.e. right from the horse’s mouth.)
One of the examples of corporations making their detailed financial information available to existing and potential investors is Goldman Sachs, a global investment banking and securities firm which engages in investment banking, securities, investment management, and other financial services.
It has a detailed and updated information about its financials including the 10-Ks and the 10-Qs and their filings with the Securities and Exchanges Commission (SEC) from time to time highlighting its transparency of its funds and its operations. This has helped Goldman Sachs immensely in maintaining its stock price steady even when some other firms within the same industry are struggling for much needed funds from the open markets.
Its investor information is accessible at: http://www2.goldmansachs.com/our-firm/investors/index.html
Investor Relations is really important for any company because it is attempting to increasing its capital and enhancing its advantage in the competitive environment. All companies should try to establish a good communication channel to interact with their investors. In other words, if it is a well relatinship between investor and company, it is a positive cycle that company attracts investors and then investors put more money into the company, resulting in the company will earn more profit and investor will also get more feedback from the company.
ReplyDelete