Research On The Behavior Of Institutional Investors Concerned With Corporate Governance Of Public Listed Companies In China

In the global market, there has been a strong trend for institutional investors to be involved in the corporate governance these years. Now institutional investors of our country have also developed dramatically and became the backbone of the stock market. The paper is aimed at doing research about the behaviors of institutional investors, especially funds, concerned with the corporate governance in Chinese market, with the method of data analysis and case study. Additionally, we advance some necessary steps to rectify improper behaviors accordingly. The thesis is based on the following logic to develop the viewpoints. First, we argued against the traditional models for corporate governance, and put forward with a new model for financial intermediate to take a role in corporate governance, the shareholder activism. In the second chapter, we take a view at the development process of foreign institutional investors' shareholder activism, trying to learn from those experiences. In the third chapter, we launch a home research, studying the behaviors of institutional investors in corporate governance. Our research is mainly carried out by figuring out the extent of involvement of intuitional investors in corporate governance, and the relationship between institutional ownership and corporate performance. Results suggest that corporate performance is not positively related to the institutional ownership. Furthermore, we find the underlying causes for such phenomenon. Then we study some cases about the institutional investors activism in our stock market. At the end, we bring forward advises for how to regulate the improper behaviors of institutional investors in China.The conclusion of this thesis is that no strong relationship exists between the corporate performance and institutional ownership, so they have not been deeply involved in the corporate governance. Nevertheless, case study shows that some active institutional investors have shown up, voicing their opinions and taking active actions. These are positive changes and momentum for active institutional investors of China.