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A Review of IR Practices in Bahrain
A Review of IR Practices in Bahrain
A Review of IR Practices in Bahrain
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A Review of IR Practices in Bahrain

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- Do you want to develop better relationships with your shareholders?
- Do you want to improve your company website?
- Do you want to engage better with the financial community?
- Do you want to increase the market capitalization of your company?
- Do you want to benchmark your Investor Relations Practices against your peers?

If you answered, yes to any of the above questions, then you came to the right place!

A Review of IR Practices in Bahrain provides pragmatic tools and insights on improving Investor Relations Practices that will hopefully support your company in achieving its ultimate objective of maximizing the shareholders' wealth. The book offers advice on improving your company website, press releases, Annual General Assembly Meeting, independent research coverage and much more!
LanguageEnglish
PublishereBookIt.com
Release dateApr 26, 2016
ISBN9781456604127
A Review of IR Practices in Bahrain

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    Book preview

    A Review of IR Practices in Bahrain - Mohamed Isa

    level.

    INTRODUCTION

    Objectives of this book

    The main objective of this book is to examine Investor Relations (IR) Practices of Bahraini Listed Companies and offer recommendations to improve the local IR Practices.

    The main questions to be addressed by the book are the following:

    • What are the IR practices of Bahraini companies listed on Bahrain Stock Exchange?

    • What are the main drivers that affect the local IR activities?

    • What are the current IR practices of companies around the world?

    Significance of this book

    Bahrain as a Financial Center is well regarded when it comes to its regulatory financial system. It has been the undisputed financial capital of the Middle East for more than 40 years. The main contributor to this position is the Central Bank of Bahrain (CBB). The CBB is the most successful regulatory authority in the Arab World in areas beyond Financial Services and Capital Markets regulations (Bahrain Economic Development Board, 2008). This book is significant because it will offer some recommendations to improve the currently prevailing IR practices to maintain Bahrain position as the leading Financial Center in the Middle East.

    According to Thomson Reuters (2009), International Investors are keen to invest in the Middle East Region due to its promising growth prospect. However, transparency and disclosure by companies remain a deterrent for those prospective investors to engage with companies in the region. Companies in Bahrain should take the lead in improving their IR practices to attract and engage those prospective investors to bring more Foreign Direct Investments (FDI), which are likely to stimulate more growth in the different economic sectors.

    The internet plays a pivotal role in the globalization of the world economy by facilitating the process of disseminating of information. This book will shed light on how companies could utilize the internet to communicate with their existing and prospective investors.

    Finally, this book is vital because more and more Bahraini Nationals started to invest in shares over the past few years and moved away from traditional investments mainly real estate. The subject of IR is interesting because it is a multidisciplinary field that integrates marketing, communication, finance and securities laws.

    Structure of the Book

    This book is divided into six chapters. The following is a brief description of each chapter.

    Chapter 1 is the Review of IR Literature where the author discusses key areas on the concept of Investor Relations such as its definition, evolution, and importance.

    Chapter 2 highlights the research Methodology employed in this book and the data to be collected.

    The author documents the analysis, findings, and discussions in Chapters 3, 4 and 5. In Chapter 3, the author documents his analysis, findings and discussions of the website analysis conducted. Whereas in Chapter 4, he laid out the analyses, findings, and discussion of the interviews conducted. Finally, in Chapter 5, he discusses the International Investor Relations Best Practices using USA as an example. These three chapters provide the answer to the three research questions of this book.

    The last chapter in this book is Chapter 6, which provides a summary and a conclusion of the entire book.

    The book provides extensive, informative, and useful appendices for companies that are serious about improving their IR Practices.

    CHAPTER 1

    REVIEW OF IR LITERATURE

    1.1 Introduction

    In this Chapter the author will provide the reader with some literature on Investor Relations (IR). He will first examine what is IR. Then, he will discuss the importance of IR to the financial community. After that, he will touch upon how the function of IR is organized within different companies. Then, he will provide an overview of the role of IR Department within companies. Finally, he will discuss the great impact of the internet on IR Practices for companies around the world.

    1.2 Definition of Investor Relations (IR)

    According to the National Investor Relations Institute (2004) in USA:

    "Investor relations is defined as a strategic management responsibility that integrates finance, communication, marketing and securities law compliance to enable the most effective two-way communication between a company and the financial community and other constituencies, which ultimately contributes to a company’s securities achieving fair valuation.

    The process of marketing a company’s stock involves identification of the target audiences who might have an interest in investing in or analyzing the company’s securities and presenting historical and prospective information about the company to enable them to make an informed investment decision or recommendation. Marketing in this context does not mean selling a company’s securities to investors, but rather a process of identifying target audiences and educating them about the present and potential value of those securities so they can make educated investment decisions."

    IR is considered a new phenomenon that developed most rapidly in USA and then followed by the United Kingdom (Marston and Straker, 2001). It emerged in USA in the 1960’s (Silver, 2004). One of the most important driving forces that developed IR in USA was the Institutionalization of its Capital Markets. In 1996, Pension Funds, Mutual Funds and Insurance Companies had the largest asset holdings in listed companies’ securities. Due to their legal fiduciary responsibilities to their clients and their power; they insisted on having detailed and timely strategic information disclosure from listed companies (Higgins, 2000). Accordingly, companies had to match their IR capabilities and activities to the increased information

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