Jurnal Komunikasi dan Bisnis

Vol. 10 No. 1 (2022): May
Articles

THE ROLE OF INVESTOR RELATIONS IN THE INDONESIAN STOCK EXCHANGE: AN IMPORTANT COMMUNICATION BRIDGE

PDF
  • Zasa Pinkan Kinanti,
  • Said Kelana Asnawi
DOI: https://doi.org/10.46806/jkb.v10i1.784

Published 2022-05-30

Keywords

  • Investor Relations,
  • Information Asymmetry,
  • Good Corporate Governance

How to Cite

Kinanti, Z. P. ., & Asnawi, S. K. (2022). THE ROLE OF INVESTOR RELATIONS IN THE INDONESIAN STOCK EXCHANGE: AN IMPORTANT COMMUNICATION BRIDGE. Jurnal Komunikasi Dan Bisnis, 10(1), 24–35. https://doi.org/10.46806/jkb.v10i1.784

Abstract

Good corporate governance and information transparency are needed to maintain investor confidence and reduce information asymmetry. Investor Relations plays an important role in a company to maintain two-way communication and investor confidence, by bridging the gap in communication between companies and investors. This study aims to analyze the theory and practice of Investor Relations in Indonesia from the perspective of Investor Relations practitioners. This study uses a qualitative method using an open-ended questionnaire to Investor Relations Officers who work in public companies that are listed in the Indonesia Stock Exchange. The results of the study found that Investor Relations have practiced in line with the theory and results of previous research on Investor Relations in terms of stakeholders, organizational structure, objectives, functions, expertise, standard practices, and obstacles of Investor Relations in Indonesia. The study found that Investor Relations in Indonesia has not fully carried out the function of internal communication which can be attributed to the lack of support from management who have not seen Investor Relations as a strategic part of the company.

PDF

Downloads

Download data is not yet available.

References

  1. Agarwal, V., Taffler, R. J., Bellotti, X., & Nash, E. A. (2015). Investor Relations, information asymmetry and market value. Accounting and Business Research, 46(1), 31–50. https://doi.org/10.1080/00014788.2015.1025254
  2. Bowen, S. A., Moon, W., & Kim, J. K. (2018). Ethics in Financial Communication and Investor Relations Stakeholders Expectations, Corporate Social Responsibility, and Principle-Based Analyses. In A. V. Laskin (Ed.), The Handbook of Financial Communication and Investor Relations (1st ed., pp. 71–86). Wiley.
  3. Bragg, S. M. (2010). Running an Effective Investor Relations Department: A Comprehensive Guide. Wiley.
  4. Bushee, B., & Miller, G. (2012). Investor Relations, Firm Visibility, and Investor Following. The Accounting Review, 87(3), 867-897. Retrieved April 26, 2021, from http://www.jstor.org/stable/23245633
  5. Cindy Vinella, Jason Wibisono, Maya Rianti, Maria Ellita Ovina, Carmel Meiden (2022): Studi Literatur: Relevansi Nilai Informasi Akuntansi terhadap Harga Saham: Jurnal Ekonomi, Manajemen, Bisnis dan AkuntansiVol.1, No.2, Maret 2022
  6. Gackowski, T. (2017). The idea of Investor Relations in the modern economy: a communication approach. Economic Research-Ekonomska Istraživanja, 30(1), 1–13. https://doi.org/10.1080/1331677x.2016.1265894
  7. Guimard, A. (2013). Investor Relations: Principles and International Best Practices in Financial Communications (2013th ed.). Palgrave Macmillan.
  8. Hamonangan, R., & Meiden, C. (2020). Relevansi Nilai dan Determinan Pengungkapan Modal Intelektual. Journal of Accounting, Finance, Taxation, and Auditing (JAFTA), 2(1), 89-108. https://doi.org/10.28932/jafta.v2i1.2928
  9. Hartomo, G. (2019, December 31). Fakta Pasar Modal 2019, BEI Kedatangan 55 Emiten Baru. IDX Channel. https//: idxchannel.okezone.com/read/2019/12/31/278/2147766/fakta-pasar-modal-2019-bei-kedatangan-55-emiten-baru
  10. Hoffmann, C. P., Tietz, S., & Hammann, K. (2018). Investor Relations – a systematic literature review. Corporate Communications: An International Journal, 23(3), 294–311. https://doi.org/10.1108/ccij-05-2017-0050
  11. Hu, Y., & Yu, L. (2010). Investor Relations, Information Asymmetry and Corporate Performance. 2010 International Conference on E-Business and E-Government, 2061–2064. https://doi.org/10.1109/icee.2010.521
  12. Huynh, T. L. D., Wu, J., & Duong, A. T. (2020). Information Asymmetry and firm value: Is Vietnam different? The Journal of Economic Asymmetries, 21, e00147. https://doi.org/10.1016/j.jeca.2019.e00147
  13. Kelly, K. S., Laskin, A. V., & Rosenstein, G. A. (2010). Investor Relations: Two-Way Symmetrical Practice. Journal of Public Relations Research, 22(2), 182–208. https://doi.org/10.1080/10627261003601630
  14. Krishnan, K., (2018). The Skills Required to Be a Successful Investor Relations Officer. In A. V. Laskin (Ed.), The Handbook of Financial Communication and Investor Relations (1st ed., pp. 97–106). Wiley.
  15. Laskin, A. V. (2009). A Descriptive Account of the Investor Relations Profession: A National Study. Journal of Business Communication, 46(2), 208–233. https://doi.org/10.1177/0021943608328078
  16. Laskin, A. V. (2011). How Investor Relations Contributes to the Corporate Bottom Line. Journal of Public Relations Research, 23(3), 302–324. https://doi.org/10.1080/1062726x.2011.582206
  17. Laskin, A. V., (2018). Investor Relations and Financial Communication: The Evolution of the Profession. In A. V. Laskin (Ed.), The Handbook of Financial Communication and Investor Relations (1st ed., pp. 3–22). Wiley.
  18. Otoritas Jasa Keuangan. (2014). Roadmap Tata Kelola Perusahaan Indonesia. https://ojk.go.id/id/data-dan-statistik/ojk/Documents/ROADMAPTATAKELOLAPERUSAHAANINDONESIA_1391520776.PDF
  19. Palmeri, R. (2018). The Role of Argumentation in Financial Communication and Investor Relations. In A. V. Laskin (Ed.), The Handbook of Financial Communication and Investor Relations (1st ed., pp. 97–106). Wiley.
  20. Puspitasari, Dwita Maya et al. Manajemen laba dalam perspektif tata kelola perusahaan. Syntax Idea, [S.l.], v. 4, n. 3, p. 517-529, mar. 2022. ISSN 2684-883X. https://doi.org/10.36418/syntax-idea.v4i3.1796
  21. Sugiyanto, A. C. (2018). Good Corporate Governance, Conservatism Accounting, Real Earnings Management, And Information Asymmetry On Share Return. JIAFE (Jurnal Ilmiah Akuntansi Fakultas Ekonomi), 4(1), 9–18. https://journal.unpak.ac.id/index.php/jiafe
  22. Vlittis, A., & Charitou, M. (2011). Valuation Effects of Investor Relations Investments. Accounting & Finance, 52(3), 941–970. https://doi.org/10.1111/j.1467-629x.2011.00426.x
  23. Yusuf, A. M. (2014). Metode Penelitian Kuantitatif, Kualitatif & Penelitian Gabungan. Prenadamedia Group.