The Effect of Relationship marketing on Firm-Investor Financial Performance in the Tehran stock Exchange Market
Subject Areas : Management AccountingManijeh Haghighinasab 1 , Mohammadreza Rostami 2 , Farzaneh Khobbakht 3 , Nazanin Hakimifar 4
1 - Associate Prof., Faculty of Social Sciences & Economics, Alzahra University, Tehran, Iran,
2 - Assistant Prof., Faculty of Social Sciences & Economics, Alzahra University, Tehran, Iran,
3 - MSc. in Financial Management, Faculty of Social Sciences & Economics, Alzahra University, Tehran, Iran
4 - PhD. student in Management, Faculty of Social Sciences & Economics, Alzahra University, Tehran
Keywords: Investor Relations, Relationship Marketing, Attitude to Relationships with, Valuation Relationships with S,
Abstract :
Many studies generally have represented the positive effects of investor relationship management on stock market value creation. The purpose of investor relations is gaining support and understanding via mutual benefit created between stockholders and organization that leads to an interactive and two-way collaboration relationship. Successful companies utilize the relationship marketing management with investors and stockholders as one of the strategies for utilizing sustainable competitive advantage in today's business world. This is the world in which maintaining the current stockholders to reach the goals is essential. In this study relation between active firms in Tehran Stock Exchange Market and its stockholders have been investigated based on the relationship marketing philosophy. In the next step, we have examined the effect of IR management on financial outcomes in the stock. We have adapted a framework proposed by Hofman and his teammate in 2010. A sample with some criteria extracted from The Tehran Stock Exchange database from 2011 to 2015. Multivariate linear regression model we are used within this research for hypothesis testing the cross-sectional data and compound method. The main dimensions in the model are investor relations, relationship marketing, relationship orientation, relationship evaluation, trust, commitment, liquidity stock return and cost of equity capital. Research findings show that there is a positive and meaningful relationship between liquidity and all dimensions of relationship marketing except for relationship evaluation. There is a positive and meaningful relationship between stock return and all dimensions of relationship marketing except for commitment. A positive and meaningful relationship was obtained for relation between reciprocity and cost of equity capital. No evidence was found and theories was not approved for meaningful effect of relationship orientation, relationship evaluation, commitment and trust on the cost of equity capital. As a final conclusion, due to importance of liquidity and stock return in this emerging market, it is beneficial for active companies to pursue dimensions of relationship marketing to manage their relation with the investors with quality.
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