Investor Relations

INTRODUCTIONxiiion the primary market to the post-IPO or “after market” life. As such, itputs particular emphasis on the need for Investor Relations to be adequatelypositioned within the company to ensure optimal performance in capitalmarkets over the long term. It presents the role of the Investor Relationsfunction in a two-dimensional manner that is comparable to customer–supplier relationships.Chapter 2 analyzes the key factors needed to create successful InvestorRelations. It first focuses on the value of senior management commitmentto the program, and stresses that being able to rely on robust informationsystems is an absolute prerequisite. The reader will also learn why it isimportant to fully understand disclosure requirements and comply withlegal obligations. Practical insight is then provided on how to professionallystructure and implement a strategic Investor Relations program. It aims toanswer questions such as “Whom should the Investor Relations departmentreport to?” “What are the major responsibilities of Investor Relations?”“How to budget Investor Relations actions?” “How to decide between outsourcingInvestor Relations and keeping it in-house?”Chapter 3 explains how to articulate a methodological approach todesign a winning Investor Relations strategy with which companies attractand retain shareholders or fund providers, ranging from effective annualreports to crisis communications management. The Investor Relationsstrategy will help get coverage from the media and financial analysts. Inaddition to highlighting the impact of corporate governance and sociallyresponsible investment on corporate reputation, topics discussed includethe following: shareholder identification and targeting, gathering offinancial and industry information to develop consistent and compellingcorporate messaging; financial calendar planning, implementation ofcommunications tools to be used in outreach programs to investors andkey stakeholders.Chapter 3 also offers many workplace-tested techniques such as how towrite financial press releases, organize a roadshow, develop a contact list,and take advantage of innovation in communication technologies.In Chapter 4, the book offers perspective on Investor Relations measurement.Assessing the value of Investor Relations on the basis of shareprice improvement is far from being the one and only metric, as many factorscome into play; therefore, it is hard to separate the role of InvestorRelations in that complex equation. I am suggesting different empiricalmethods framework to measure the results of an Investor Relations strategyagainst initial objectives, with a clear focus on steady improvementand value creation. This chapter lists not only the quantitative criteria thatinclude stock-market–related metrics, but also the evolution of the earningsconsensus, the shareholder base, for instance. It also considers qualitative