Friday, May 22, 2009

The growing importance of investor relations

As the world changes and, more specifically, as the economy changes, investor relations is becoming a more crucial component of everyday corporate operations.

For starters, investment banks have taken major blows during the financial crisis. As a result they are no longer able to provide some services that they could in the past. Road shows in particular are being arranged by investor relations firms more now than ever before.

New media such as blogs, social networking sites, and RSS provide new channels for communication between firms and investors. Investors in particular are becoming very savvy in using these mediums to gather information about investment opportunities. As this complexity of communication increases the challenge of effectively communicating with investors grows as well. Make sure your IR team knows how to navigate these waters.

Finally, globalization creates new opportunities for investment as well as sales. The opportunity now exists to cast a very wide net in finding new investors. Your IR firm should literally be searching the entire world for you.

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