FAQs

The TIRC has gathered Frequently Asked Questions by investor relations officers. We hope that this information will answer some of the basic questions an IRO might have. If you have any further questions, please feel free to ask us via email at TIRC@set.or.th

1. What is IR and what are IR Officers’ primary responsibilities?

Answer
Investor relations are an important strategic management tool which combines finance, communications, marketing, and public relations together to provide a company's information to all relevant parties such as institutional shareholders, analysts and retail investors. The objective of this unit is to add and reflect the true value of the company's stock shares to the general public and The Stock Exchange of Thailand. Investor Relations’ activities are very important to the company since it also helps to promote a company's good governance practices to investors and the general public.

IROs’ primary responsibilities:
1.1 Spokesperson
1.2 Monitor the company's stock transactions
1.3 Update investors about the company's news and changes
1.4 Build the confidence of stock analysts and investors in the company
1.5 Protect the company’s image
1.6 Co-ordinate IR activities with the management
1.7 Forward information between internal and external parties.

2. Objectives of setting up the TIRC

Answer
a. To be the center for the exchange of information and the organizing of activities on IR for IROs both in Thailand and in foreign countries
b. To be the center for the promotion of IR methodology through the hosting of seminars and training courses for IROs
c. To gather and analyze all information stemming from comments and suggestions about the TIRC’s activities.
d. To be one of the mechanisms able to help the general public better understand what IROs do.

3. Qualities of an Investor Relation Officer ( IRO )

Answer
An Investor Relations Officer (IRO) should have a financial, capital market, marketing and/or public relations backgrounds since IROs will be communicating with all relevant parties about the company's performance.

4. Who should be included in a company’s IR team? And, who does the IR unit report to?

IR Team consists of
a. CEO & CFO
b. Senior management
c. Accountants and Financial officers
d. Legal advisors
e. Investor Relation Department Head
f. Public relations officer
g. Public relation advisor (outsider)
h. Investment banking agent (Financial Advisor)

IR Team should report directly to the CEO (Chief Executive Officer ) or CFO ( Chief Financial Officer )

5. How can we evaluate the performance of IROs?

Answer
It is hard to evaluate the performance of IROs in the short term and shouldn't use the company's stock price movements to judge the performance since there are numerous factors, both external and internal, that cause stock prices to change. However, performance evaluation might be done based on the number and quality of research done on the company’s stock by securities companies and research houses. The company can conduct research by distributing surveys to stock analysts and relevant parties regarding the performance of its IROs.

6. What are the IROs’ most effective communication tools?

Answer
a. Publications including the company's annual report, fact sheets, and earning releases
b. One-on-one or group meetings with analysts. A roadshow with foreign stock analysts and investors
c. Other kinds of technological innovations such as websites, teleconferences, video conferences

7. What are the differences between IR (Investor Relations) PR (Public Relations)?

Answer:
1. IR communicates with a more focused audience e.g. stock analysts and institutional investors but PR communicates with the general public and the press
2. IR needs to have a deep understanding of finance, marketing, and PR; while PR doesn't need to have such a deep understanding of those fields.
3. IR has to maintain relations with primarily stock analysts and institutional investors, but PR will focus its relationship building on the press.

8. What kind of information should the IR prepare for stock analysts and investors?