Communication between companies and investors is becoming a fundamental tool to know the real and potential value of listed companies. Furthermore, open and constructive communication with all participants in the capital markets, as well as a context of transparency regarding the evolution of the company, is an effective means of gaining the trust and credibility of investors.

In the last 15 years the figure and department of Investor Relations has gained special relevance. The main function of investor relations is none other than maintaining an open and constant dialogue with the financial community, including analysts, minority private shareholders, large institutional shareholders, bondholders, credit rating agencies and other market players, such as the National Securities Market Commission. Simple and effective communication, together with the ability to establish long-term relationships based on credibility and trust, are key factors in this regard.

Investor relations objective:

The importance of the relationship between a listed company and investors lies in the fact that, through it, the visibility of the company in the capital markets is enhanced and an attempt is made to avoid unnecessary fluctuations in the price of shares through current information. the company and the sector, the competitive dynamics, relevant and realistic evolution expectations, and the operational and financial evolution of the company.

In addition, the Investor Relations team provides support to the general management in its decision-making, taking into account the feedback received from the financial community, mainly through online tools.

Challenges for listed companies in investor relations:

Although progress has been made on the right track, challenges lie ahead:

  • Segment communication policies according to the type of audience and adapt the message at all times.
  • Optimally handling digital tools, to reach a wider audience, in a more immediate way and with more relevant content, and, with this, have greater visibility in the market.
  • Advance in the development of metrics or elements that facilitate the analysis of profitability and efficiency that these investor relations figures contribute to companies.
  • Listen to the market and the content it demands, which is increasingly focused on non-financial information and integrated reports with content more related to corporate strategy, business or social responsibility. The Integrated Report, increasingly present in listed companies, must rise as the mother document of every entity and be the axis of communication with all interested parties.