What are the functions of investor relations?

 

Investor relations have evolved rapidly in recent years, and it is difficult to see it not being a critical role of multinational corporations with a global shareholder base. Investor relations provide significant support to the finance of a company which makes it an important factor in the value development of the company. 

If we look at the general description of investor relations, then IR has several other roles to play for a company in comparison to that. With a variety of functions, IR has a much more significant role to play within the company and in the capital market. For these reasons, it gets important for businesses to seek professional investor relations Beratung.

What are these different functions of investor relations? Let’s see:

Providing information in accordance with regulatory requirements

One of the main purposes of IR as an information supplier is to meet regulatory obligations. The communication focused on finance is highly reactive and focused on the bare essentials. 

Communication

The IR manager is seen as a communication function, specifically as the company's representative in the financial markets. This is distinct from the IR conducted by the finance department.

 

Some say internal communications is the basic function of IR. Others argue that IR actually comes under the planning or accounting departments. 

Marketing

As a marketing function, IR promotes the stock. The goal is to increase the value of the company's stock while also promoting a positive image. However, there is a qualitative difference between selling the equities story and engaging investors using marketing approaches.

Finance 

IR is known for providing support services to the finance department of any company. The major responsibility of the IR manager is to provide information and give details regarding the numbers. 

Holistics activities

In a firm, IR is a specialized functional unit that works in conjunction with financing and communication. IR also offers planning, partnerships, corporate management, and sustainability. 

 

IR also serves as a teaching tool. IR also serves as a teaching tool. It familiarises operational business entities with the operations of the capital market and the requirements of the shareholders as company owners.

 

IR gives major support to the financing of a company and is thus actively involved in producing value for both types of stakeholders. 

 

In a nutshell, there is no clear definition of the different roles of the IR. They are consistent with both the present and historical perspectives on IR features. Investor relations serve as a connection point for investors and company executives. Evaluation is the first step in IR's role in developing communication channels. Investor relations play a critical role in the growth and expansion of every business. For this reason, every company should choose a respectable and trustworthy agency to handle its investor relations.