1 Strategic Relevance of Investor Relations

In a Nutshell

Investor Relations is a field of action in strategic corporate communication. It describes the management by a stock corporation of its relations with investors.

The primary goal of IR is to optimize the company’s market valuation or its equity financing.

Moreover, credible, reliable, and consistent information raises the profile and the basis of trust of companies and thus strengthens their market position.

IR takes on a strategic relevance in exceptional situations, such as transactions (M&A), the emergence of shareholder activists, and in crises.

The clearer the corporate strategy, the more efficient the implementation, and the more disciplined the deployment of capital and resources, the stronger the basis for financial communication.

Maintaining close relations with institutional investors also helps.

A strong IR and communication program starts with a good analysis. What strengths and weaknesses does the company have from an investor’s perspective?

The actual and target status of the IR objectives is identified and the target groups, perception, instruments and communication principles are defined in the IR strategy. It is becoming ever more important for risk analyses, sustainability planning and business strategy to be run as integral processes.

The strategic issues involved in Investor Relations are operationalized and laid out on a timeline for the IR planning.