ABSTRACT

A Study on KOSDAQ Listed Venture Firms IR
Activitiesina Form of PR

This study reviewed an importance of in vestors relations (IR) activities as a mean of promoting corporate public relation for venture firms, which have had absolutely limited capacity of finance, human resource, and promotion channels to invest in corporate promotion comparing to large enterprises. Based on a case study on the IR activities of venture firms listed in Korean Securities Dealers Automated Quotation, major factors of the successful IR activities were analyzed to seek effective method of applying IR as a sector of corporate public relation. The results of study wer econcluded as below.

First, the recognition level of IR activity and the recognition on the level of IR activity performed by Korean venture firms were differed by a group related the venture firms and general investor group.

However, both the venture firms related group and the general investors understood the importance of IR as a mean of promoting the public relation. Therefore, a method of public relation which has been performed until now by promoting only corporate images or advantageous of products to an unspecified public should seek other alternatives. Especially, it has been a reality that the IR activity, targeted to individual investors, were almost ignored by Korean stock market: However, Korean security and venture firms should provide IR and education programs of utilizing IR to individual investors.

Second, although it has shown some degrees of difference, the venture firm related group and the general investors recognized an important function and effect of IR. However, they both considered that IR basically exercised the important function in various areas and the effectiveness was appropriate to its function. A premising condition to secure IR as a requisite of competitiveness required the precise understanding and extended participation of CEO. In addition, an accurate transmission of management information to investors through a differentiated route was also needed. In order to do that through examples of leading companies which have had several decades of IR operation history and mostly established and run independent IR divisions, the strategic meaning and impotance of IR should be aware, and continuous and long term performance of IR activity were needed.

Third, regarding the IR activity of venture firms in a cyberspace, the venture firms related group were generally satisfied; nonetheless, the general investors expressed that the specific and various information for their purpose were insufficient, and the information technology for speedy search were yet unsatisfactory. The reason for this rapid increase of IR activity in cyberspace was that the cyberspace was a great tool which enabling closer approach to stockholders and customers. The distant relationship with the stockholders and the customer with existing multi media was changed into closer relationship by utilization of the in ternet media, even though the IR activity of venture firms in the cyberspacer equired to conquer many factors. First of all, the information should be structured to enable an easy access and search for investors while providing massive amount of information. Also, the given information should have a direct inducement to substantial investment and influence in the stock price. For this, firms needed a prompt update, a management and a maintenance of information through continuous analyses of data.

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