The concept of investor relations has gained quite a good level of popularity over the last decade, and now emerged as one of the crucial aspects of the corporate landscape. The sphere of investor relations tends to combine the various elements of finance, communication, and marketing, with the aim of controlling the flow of information between a firm, its stakeholders and its investors in an effective and smooth fashion. Scott Tominaga highlights that professionals working in the department of investor relations in an organization tend to become the backbone of the firm due to their role of being the prime channel of communication between the distinguished stakeholders of the company.
The investors are known to play a major role in the overall success and growth of any business. Therefore, it is vital for all types of organizations to maintain a transparent, strong and positive relationship with their discerning investors. According to Scott Tominaga the operational success of almost any type of organization largely depends on their investor relationships. As a result, it becomes crucial for companies to communicate with utmost honesty and efficiency with these stakeholders. The professional working in the domain of investor relations basically focuses on providing transparent and accurate investment information to the various stakeholders of an organization. This information tends to be ultimately used to both identify and define the future investment routes and goals of the firm.
The modern corporate landscape tends to rely significantly on a robust and well functioning department of investor relations. Without the presence of such a unit, the stock prices of an organization may run the risk of becoming stagnant over time. This type of phenomenon usually takes place due to the fact that in today’s world no investor would want to put their money in an organization where they are not given the proper financial information and assured of absolute transparency. Scott Tominaga says that these days most investors tend to seek out comprehensive and clear financial reports made by the department of investor relations before putting their money in the company. This report typically involves both the good and bad financial figures and statistics of an organization, and goes a long way in enabling the investors to acquire a clear and precise idea about what to expect from their investment.
It is the job of the investor relations department to represent the firm in concern to the investors. They however also are required to act as the representative of the investors inside the enterprise. The professionals working in this department play a major role in enabling organizations to achieve the maximum share price that reflects their fundamental valuation. They tend to provide all the financial details and information needed to the relevant investors in both an accurate and timely manner. The investor relation professionals also provide the vital non-financial data that helps in supporting company valuations, and ensures its smooth functioning and growth.
