In the functioning of a Public company, there is a responsibility for managing and communicating information to the public in aspects of Company's operations, managerial organization and financial standing. Investor relations is a department in itself which is devoted in handling inquiries from shareholders and investors also for the potential investors interested in company's stocks or financial stability. An effective CFO possessing a wide range of experience can help in the process of wide range of investor relations services thereby assisting in undertaking detailed interface with investment analysts and other parties that represent institutional investors. A CFO helps in assisting in preparation of various investor presentations, publishing of research and opinions regarding public companies which influence the investment community.
The functioning of a CFO complex investors demands, such as assessment and implementation of MIS reporting structure. The company's finance team helps in generating MIS reporting structure, MIS reports from their accounting software. A proper training program is held for the finance and accounting team in this reporting accurate financial, data and knowledge. It also serves as a guide in recommending the investors on the key areas to seek comfort from the auditors of the company.
Thus the CFO in relation to investor is responsible for:
- Identifying the issues of investors and informing the management about these issues.
- Setting up of annual calendar of events to meet with the shareholders of the Company (preferably on location) potential investors, meetings etc.
- Keeping the track of the investor base (databases, external compliance's etc.).
- Analysis of market and company data.
- Ensuring of the information about the company to investors in a well-defined, transparent, consistent and reliable manner.