Investor Relations, Information Asymmetry and Corporate Performance

This paper investigated the association between investor relations level and corporate performance. We used Nankai IRMI (investor relations management index) to measure investor relations level, which based on amount of interactive communication and organizational guarantee provided in the 2007 self-examination reports. The results showed that higher investor relations were associated with higher corporate performance after controlling β, size and other variables. We fatherly explored the association among investor relations, information asymmetry and corporate performance, and found investor relations influenced corporate performance by reducing information asymmetry, which confirmed the mediator effect of information asymmetry. The evidence of this paper also supported that investor relations was a self-governance activity.