Our mission is to contribute constantly to the vitality of stock markets and the public’s trust in these markets. We aim to accomplish this by using investor relations (IR) activities to build relationships rooted in trust between companies and investors. Through IR, we will assist many growing companies in procuring funds and increasing their market capitalization. Vitality enables stock markets to serve as a sound channel of funds from investors to companies. This process helps create highly competitive companies, which are a vital component of Japan’s industrial base. Funds in pension plans, most of which represent the savings of individuals, have been leveraging corporate growth for many years to increase their assets. Today, as Japan seeks a means of funding pensions for its aging population, adding vitality to stock markets is certain to become an even more urgent issue.
Building relationships based on trust is the fundamental means of enhancing the functions of stock markets. To accomplish this, companies must fulfill their obligations to explain their operations and to ensure the transparency of the information they disclose. One way is by explaining their future business models and plans for growth in a style that shareholders and other investors can understand. Companies must also announce operating results in a timely manner. These activities are crucial to earning a reputation for transparency and trust among investors. Effective IR activities allow companies to procure funds from capital markets more easily and can even bolster the value of the corporate brand.
Trust in capital markets often translates into greater trust for a company’s products and services in consumer markets, too. This has been proven repeatedly in many industries. IR also helps companies recruit talented people. Companies in Europe and North America position IR as a key element of their management strategies. Executives are well aware of the value of IR with regard to their entire corporate communications matrix.
In Japan, however, companies at first adopted a passive view of IR as nothing more than part of their obligation to disclose information. Today, managers understand that IR is an integral part of their strategies. This is why many Japanese companies have been conducting strategic communication activities to help them procure the capital, information and people they need to grow. There is already an enormous gap between companies that adopted this stance even a few years ago and companies that have yet to realize the value of IR.
Companies become even stronger by using IR to expose themselves to the challenges and opportunities of capital markets. To sustain growth, every company needs to remain a learning organization. And this learning process is a natural by-product of an IR program. The primary duty of an executive is to improve sales and earnings while maintaining a market capitalization that reflects this performance. Executing an effective IR program that includes explaining their activities to investors is an excellent way to obtain feedback. Stock prices are how markets provide feedback. Feedback also includes objective information on industry trends and many other items that are vital to successful management. All this information is invaluable to formulating a company’s next set of strategies and objectives. In this manner, IR can generate a cycle that can help companies continue to grow. This is why an effective IR program can be vital to the ability of a publicly owned company to achieve its strategic goals.
Since its establishment, FinanTec has assisted many growing companies in devising and executing effective IR programs. Please allow us to use our expertise to play a part in helping your company grow. You will quickly realize that FinanTec is an organization that is dedicated to growing and succeeding hand-in-hand with our clients.