Research on the Interactive Relationship between Investor Relations and the Value of Company——Evidence from Chinese Listed Companies

Existing research shows that good investor relations(IR) can bring a series of enterprise value,such as better enterprise reputation,lower capital cost,and higher stock price.However,few scholars pay attention to the interactive relationship between investor relations and corporate value.In order to reveal the real relationship between investor relations and corporate value,this research constructs a set of IR evaluation system which emphasis nonfinancial disclosure and interactive communication and employs IR model to measure the level of IR.The paper chooses 826 Chinese listed companies which listed in Shanghai Stock Exchange as a sample and comprehensively utilize both the annual reports and Web site information platform to gather data.After examining the assumptions on the relationship between IR and the value of the company,it proves the relationship between company value and the level of investor relations in the same period is like an inverted U-shaped curve.This shows the listed companies will have a perfect investor relations plans and policies,and take an active part in investor relations activities so that IRI will reach a higher level only when company value is at a certain level.The study has enriched the research achievements in the field of the investor relations.