It is often not enough for a firm to be successful, people must know it is successful before it translates into market value. Investor Relations (or Investor PR) involves the issue of press releases, tours, sponsorship of industry research and other activities to ensure the firm maintains a high profile in the investment community.
You will need to maintain a certain level of Investor PR to maintain your firm’s profile as it decays over time.
How does Investor Relations work?
The Investor PR Index acts as a multiplier on your company’s share price. For example, if your Investor PR index is 1.1, then your Share Price will be 10% higher than if your Investor PR index was 1.0 (assuming no other changes).
Half of your accumulated Investor PR investment from the previous decision period will carry over to the following period.
Spending too much on Investor Relations may depress your Share Price by reducing your Profit and Earnings Per Share. There may also be a better use for the money spent on Investor Relations, such as Product Development.