At Theôria Research Institute, we engage in corporate IR support activities that allow capital markets to more appropriately evaluate companies. At the same time, we contribute to an environment that enables capital markets to better fulfill their functions by actively reinvigorating IR activities.

IR activities are essential to accurately communicate a company’s management information to existing and potential stakeholders. In the arena of investor relations, senior management must publicly provide their analysis of the factors underlying company performance as well as an assessment of markets and other external conditions. From this, management formulates those key measures—in the form of management strategies and plans—that are required to address identified pending issues. With this as a starting point, capital markets can gradually update information along with companies, and assess risks from future projections and the stated intentions of a company’s management.

Through direct communication activities with investors, companies are expected to explain the process by which their management reaches decisions and to demonstrate a commitment to a vision of the future that emerges from the execution of their management strategies. In this way, a company can obtain evaluations from stakeholders and personally respond to concerns about the appropriateness of management strategies and decision-making, while taking the opportunity to improve company management including guarding against unethical behavior by supervisors. By promoting interactive communications with the marketplace, IR is an effective method to create processes that enhance corporate governance functions, as well as an indirect means to improve stock price and expand a company’s shareholder base.

Despite efforts to provide information on the part of IR section heads, gaining support from the marketplace can be difficult if the IR activities of a company fail in terms of analyzing business conditions logically and objectively, identifying key issues, and improving decision-making and management. In contrast, if management makes full use of the company’s reputation and information in working to achieve sustained development as the ultimate goal of corporate management, then ongoing improvements to corporate value will follow as a result.

Raising intrinsic corporate value and realizing sustainability cannot be achieved through IR activities alone. IR must be ingrained in the management system and a cycle for enhancing management must be initiated to bring about sustainability and ultimately contribute to society—this is the way to raise corporate value, and this constitutes our approach at Theôria Research Institute. We are confident that sustainability can be realized when companies adopt a mentality of continuous restructuring while responding to the concerns of diverse stakeholders and fulfilling their responsibility to society.