Research On The Impact Of Chinese Investors' Field Research On Corporate Governance And Stock Price Performance

Since 1990 s,China's stock market has been developing continuously,and has gradually transited from retail-dominated market to institutional-dominated market.Although there are still a large number of individual A-share retail investors,from the perspective of market value,the overall trend of institutional investors' shareholding has been rising.Up to now,institutional investors have become the most important investors in the capital market.According to Wande statistics,A-share institutional investors developed the fastest between 2014 and 2017.At the beginning of 2014,institutional investors accounted for about 40%,in 2015,about 65%,and by the end of 2017,the number reached about 70%.Opening up the individual stocks,we can also find that more and more institutional investors have entered the top ten circulating shareholders,especially leading stocks and high-quality company stocks.Institutional investors often occupy the majority of the top ten circulating shareholders.With relatively long-term investment concepts and professional investment and research methods,institutional investors have become the most important investors leading the market.Compared with overseas capital markets,the frequency of on-the-spot investigation in the way of exchange between institutional investors and listed companies in China is high.At the same time,Shenzhen Stock Exchange's information disclosure regulations on on on-the-spot investigation and other investor exchange activities are unique in the supervision measures of global capital market,which reflects the determination of regulators to standardize the communication mechanism between institutional investors and listed companies,and significantly improves the publicity of information disclosure.Levelness.At the same time,the unique mechanism design of Shenzhen Stock Exchange provides a new perspective and detailed data for academic research,which is of great help to further research on the field survey of institutional investors.Investor on-the-spot investigation is an important way for institutional investors in China's capital market to obtain information,and is also the most important way to communicate with listed companies.Obviously,through on-the-spot investigation,institutional investors will have a more comprehensive grasp of the company's operation,at the same time,it is possible to obtain certain private information and convey certain external shareholders' demands.On the contrary,what is the reverse effect of field research on listed companies? Can investors' on-the-spot investigation promote listed companies to improve their governance level,and enhance the quality of information disclosure and transmission efficiency? This paper mainly studies the above-mentioned problems from four aspects,namely,the relationship between investor field research and social responsibility of listed companies,information disclosure of listed companies,synchronization of stock prices,stock price crash and so on.Among them,the quality of social responsibility and information disclosure is an important reflection of corporate governance,while the synchronization of stock prices and the probability of stock price collapse reflect the information efficiency of capital market,that is,through field research,the effectiveness of corporate information transmission.This paper will focus on the positive role of investor on-the-spot research,and study the impact mechanism of investor on-the-spot research to promote corporate governance,improve the external transmission of corporate information,and enhance the efficiency of capital market.The main conclusions of this paper are as follows:(1)Institutional investors' field research and listed companies' social responsibility.Empirical analysis shows that investor's field research significantly improves corporate social responsibility.The more investor's field research and the number of institutions,the higher corporate social responsibility.On the one hand,investor's field research can serve as a channel to transmit the pressure exerted by capital market on enterprises.On the other hand,investor field research can play the role of information mining,transfer corporate social responsibility information to the capital market,and affect the cost and benefits of corporate social responsibility.(2)Institutional investors' field research and information disclosure quality of listed companies.Empirical analysis shows that investor's on-the-spot investigation has significantly improved the quality of enterprise information disclosure.The more investor's on-the-spot investigation and the number of institutions,the higher the quality of enterprise information disclosure.The promotion of investor's on-the-spot investigation on the quality of enterprise information disclosure is in the low environment of regional legal system and non-local legal system.Four major auditing firms are more prominent.After controlling endogenesis,the above conclusions are still significant.This paper further examines the mechanism of the impact of investor field research on the quality of information disclosure,and finds that investor field research can improve the tracking level of analysts and corporate governance of listed companies.(3)Institutional investors' field research and company stock price synchronization.Empirical analysis shows that through on-the-spot investigation,institutional investors can excavate the company's private information,promote more company specific information to integrate into the stock price,thus reducing the stock price synchronization of the companies being investigated,that is,institutional investors' on-the-spot investigation can improve the information efficiency of the capital market.Further analysis shows that this phenomenon is more significant in listed companies with poor quality of information disclosure and large R?D investment,which indicates that when the disclosure of public information is insufficient,institutional investors can obtain more private information and the value of information mining in field research is greater.(4)Institutional investors' field research and the risk of stock price collapse.Institutional investors' field research can significantly reduce the risk of stock price collapse of listed companies.The higher the frequency,breadth and depth of investor's field research,the lower the risk of stock price collapse.Further,through the study of its impact mechanism,we find that institutional investors mainly reduce the risk of stock price crash by improving the supervision and governance of listed companies and improving the information asymmetry of companies.