Institutional Equity, Corporate Governance And Minority Investors Protection

In emerging market, due to the imperfect of laws, regulations and corporate governance structure, minority investors which shown as the cornerstones of capital market, whose interests always be infringed. This make the minority investors protection become a hot issue both in theory and practice. Especial in the Chinese capital market which characters are "emerging and transition", Research on minority investors protection makes more practical meaning. But previous studies focused largely on the legal protection of investor. In this paper we will research from the angle of afterwards evaluation of protection which root in Jiang Fuxiu etc(2007,2008). We constructed a group of index as the measurement of minority investors protection. Then use the method of factor analysis to calculate the scores of those index, and then make the scores as The dependent variable, examined the institutional investors'influence on minority investor protection.In this paper, We chose the listed company which normal trade in ShenZhen stock exchange between the year 2007-2009 as the test sample. And found that institutional investors can actually promote the minority investors protection on objectively, and with increasing the proportion of shares, the effects are stronger. Meanwhile, the institutional investors'effectiveness may be affected by the character of the listed companies' actual controller and the degree of marketization of the district where listed companies are. We found that The state-owned properties of listed companies'actual controller will hold-up the institutional investors' effectiveness on promoting the minority investors protection, but in the districts where the degree of marketization are high, institutional investors'positive effect will play better.