Investor relations in developing country: a disclosure strategy

• Main Authors: Abdul Hamid, Fathilatul Zakimi, Md Saleh, Md Suhaimi, Md Yusof, Mohd Atef
• Format: Article
• Language: English
• Published: Social Science Electronic Publishing 2003
• Subjects: HD28 Management. Industrial Management
• Online Access: http://repo.uum.edu.my/16059/1/SSRN-id383040.pdf; http://repo.uum.edu.my/16059/; http://doi.org/10.2139/ssrn.383040
• Institution: Universiti Utara Malaysia

The recent corporate collapse in the United States of America (US) has possibly highlighted inadequacy of corporate disclosure policies, governance and investor relations that potentially indicate that current polices needed serious revisions. Corporate disclosure policies and investor relations (hereafter known as IR) are neither related nor competing each other. According to Marston (1996) the purpose of IR is to provide information to financial community and public investor to evaluate the company.Rayder and Register (1989) proposed that IR has strategic importance to create linkage between company and investors.Furthermore, they have suggested that IR activities must focus on three principles. Firstly, is for the firm interest by achieving and maintaining highest share price.Secondly, to create investor confidence that will lower the cost of financing.Thirdly, to attain needs of shareholder whose holding highest companies’ shares or to attract institutional shareholders and foreign shareholders to invest in companies’ shares or debts in future.