Study On The Relationship Between Governance, Value Of A&f Limited Companies And Institutional Investor’s Behavior

Agricultural and forestry (A&F) listed Companies play an important role in realizingindustrialized operation of the whole industry in China. However, there exhibit a few ofcharacteristic problems for A&F listed companies different form those of other industries, whichhave some negative effects on their governance, value and long-term development.Chinese institutional investors (IIs) have been the dominant force of the capital market aftermore than10years’ development, which are taking a more and more important effect on listedcompanies’ financing, governance and value. As the main forces of the capital market, IIs and(A&F) listed companies have been influencing each other. The dissertation studied IIs’ investingpreference, the effect of IIs on diversification and innovative behavior of A&F listed companies,the relationship between IIs and corporate value, and IIs’ exit behavior.The main conclusions of the dissertation list below: First, IIs’ investing preference increasessignificantly if A&F listed companies have higher controlling ownership, lower state-ownedshares, higher rate of return, lower subsidy income, etc; Second, shareholding concentration andshareholding by pressure-resistance IIs play a significant role in supervising diversification;Third, IIs’ aggregate shareholding and pressure-resistance IIs’ shareholding both have significantinfluence on innovation input of A&F listed companies; Fourth, IIs’ shareholding concentrationand pressure-resistance IIs’ shareholding both have significant negative effect on A&F listedcompanies’ value in the next period. Fifth, A&F listed companies will have lower diversificationlevel and no change in innovative input if IIs exit seriously.