Investor Relations: Definition & Role of the IR Department

By redback
investor relations

Investor Relations (IR) is a big part of listed companies and start-ups who want to grow their stock value or just get financed by investors. Investors are often the lifeblood for companies, and they are a key group of individuals that support the activity.

It’s important to set-up a dedicated team to communicate with this group. In our experience, for small and medium sized businesses, the CEO and key managers are taking care of the communication with investors.

What are investor relations?

Investor relations is a division in a business, which can be often found in a publicly listed company. Tasks linked to investor relations can also be the management of investors in a company which can be found in start-ups where the need to manage investors is essential.

The IR department needs to provide investors or potential investors with an accurate account of company affairs. This will help private and institutional investors to make informed decisions on whether to invest or not. That’s why CEO’s and managers in small companies dedicate some amount of their time to prepare specific documents and presentations for the investors to review.

It is not uncommon to find the investor relations division inside the public relations division in the case of big public companies. The need to have those two departments linked, comes from the fact that information shared to the public can influence the stock market quite significantly. Remember when Elon Musk smashed the window of his Cybertruck on stage? Yeah, the Tesla stock dropped 6% after this fiasco.

elon_musk_cybertruck

For smaller companies, the Chief Financial Officer (CFO) is often the person responsible for Investor Relations. The IR team is responsible for communicating information with investors, shareholders, government organizations and the financial world to ensure that the company is being traded fairly and to its value.

The need for a dedicated IR department inside big companies is raised during the Initial Public Offering (IPO) phase. At this stage, potential investors are trying to access financial statements, critical information about the company to get a sense of the potential of their investment. It is better to manage this need for information by having a team behind it. This team will be able to to get qualitative or quantitative data for the investors by working with everyone in the company. A separate team is needed because the amount of information required can be overwhelming and a CFO would dedicate it’s entire time to be able to answer to these needs.

IR teams are especially busy when releasing financial data, be it per month or per quarter, about the company. They also need to organise press briefings, conferences to inform about earnings, share, stock, current company focus and future developments. IR teams have also to publish specialised reports and documents to the financial community in order for them to get the right information. IR departments have the responsibility to communicate and exchange with investment analysts and experts that provide public opinion on the company.

We can see that for the last few years, CEO’s and founders have been used as public figures to represent the company to the outside, and therefore investors. The IR team needs to manage TV shows, radio programs, product releases (like Apple has been doing for the past 15 years) and a lot more. This trend is important and if you need to get out IR content quickly to your audience, we have a dedicated digital event service for you.

Why use conferencing systems for your IR?

Investor Relations content needs to be communicated timely and effectively with the overall financial community. Conferencing systems are the perfect tool to achieve this, since you are able to communicate to a larger audience anywhere in the world.

investor

Teleconferencing, video conferencing and web conferencing are all ways to improve your IR management. These systems make it easier for you to share financial information with your stakeholders and community. Conference and webcast can be used to stream information online. With videos you can use webinars in order to get the best quality content and engagement with your audience. With our technology, it’s easy for your stakeholders to download a pdf or a statement during the webcast or the webinar. You can also increase and foster engagement during your sessions by adding polls, surveys, and Q&A sessions during your webinar.

Why should you use Redback Connect for your Investor Relations?

We have been delivering digital events for thousands of customers in Australia over the last 15 years. Our industry expertise and our data tells us that 80% prefer digital channels for communicating with investors over physical means of communication.

We have developed a dedicated Investor Relations platform that helps you view and manage all online shareholders thanks to our live and interactive control portal.

We have dedicated project managers and a technical team in Sydney which means that you benefit from highly qualified operators that work at the same time you do.

Our prices are transparent and you can download our prices and inclusions easily on our investor relations page.

By trusting us with your investor relations communication you set aside all technical risks because we take care of it and you take care of the content.

We also have a dedicated page with informative IR videos on different investor relations topics, such as: investor briefings and roadshows, annual reports, shareholder activism and what information to include in your investor presentations.

You don’t want to transfer your overall investor relations communication? No problem, you can try us out with our dedicated virtual annual general meeting platform. AGMs are hugely important for all organisations and we can help remove the stress from the technical setup by taking care of everything. From virtual to studio AGM we have a solution for you.

Our platform was developed to make it easy for you to program Q&A’s, live polling sessions and proxy voting into your AGM.

If you have any questions regarding investor relations systems or virtual AGM’s, don’t hesitate to contact us by calling 1800 733 416.

LEAVE A COMMENT