• April 26, 2021
  • Pristine@admin
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Patricia Baronowski-Schneider
Pristine Advisers
New York, NY
Patricia is CEO of Pristine Advisers, an IR/PR/Media Relations/Marketing firm with 33 years of experience working her way to starting her own Company a decade ago. She can be reached at pbaronowski@pristineadvisers.com

 

Investor Relations has a vital role within any company. It combines finance, communication, and marketing for the seamless flow of information between a company, its investors, and its other external shareholders. So, why do companies need to maintain strong relationships with investors? It is because investors play a crucial role in the growth of an organization. 

After reading this blog till the end, you will have a better idea of what investor relations are and how they combine finance, communication, and marketing. First, let’s understand what the goals of investor relations are.

 

Goals of Investor Relations

  • To reach the best share price that portrays the value of the company
  • Two-way representation between the investors and the company
  • Communicating financial information to investors
  • Presenting the feedback of investors to the company’s management

Read more about Investor Relations here.

 

A Department for Investor Relations

As the importance of this domain is ever-increasing, companies need a separate department to handle all affairs related to investor relations. The size of the department depends on the size of the company and the number of investors they have. The department is essentially a combination of finance, communication, and marketing. Let’s see how.

Finance

All financial information of the company is shared with the investors through this department. Also, any financial information that comes in from Wall Street for the company’s top management comes in through the Investor Relations department. This department is also responsible for filing and publishing a report with the Securities and Exchange Commission (SEC) or any other relevant commission, depending on where the firm is listed. Moreover, all the information that is transferred to Wall Street has to be in a language that they understand better; terms like dividends, Earnings per Share (EPS), and profit margins must be used. 

Communication

Think of the Investor Relations department as a portal through which both sides communicate. The company relays all its information to the investors through this department, while the investors and other stakeholders also transmit their feedback back through it. Furthermore, Investor Relations knows what the investors will like better, and during the communication, it modifies information to suit the investors’ needs. The investors might see something as an asset and something as a flaw. It is up to the Investors Relations department to communicate in a way that leads to the success and growth of the business. 

Marketing

The department of Investor Relations has to look after the public image of the company and its reputation. It also needs to manage the perception of shareholders. All of this comes under marketing. The department must ensure that in everything they communicate outside the company, the brand image and company’s values are not lost.

 

Final Word

In this blog, we tried to clarify how an Investor Relations department works by combining finance, communication, and marketing. You can always contact us for guidance in anything related to Investor Relations (IR), Public Relations (PR), and Marketing. We are an award-winning firm and have been featured in the media as well, so surely, we are experts in all these fields.

Wishing you good health and success.