The Positive Research Of Institutional Investors On Corporate Governance Performance

Developed countries in Europe and America, institutional investors are to the natural product of a certain stage of capital market development. The progress of China's capital market is relatively slow, and because of the existence of various institutional and legal constraints, institutional investor basically does not exist. With well-developed capital market, in order to improve the governance of listed companies, institutional investors have a certain degree of development. However, whether China's institutional investors took part in corporate governance such as institutional investors in developed countries is a subject worthy of study.The development and experience of institutional investors in the Western developed countries (especially the U.S.)As the background, Article reviews the theory of the corporate governance and institutional investors. Focusing on analysis of institutional investors on corporate governance in the theoretical basis for the Institutional Shareholder Doctrine, discussed the subjective and objective reasons of the shareholder activism. On this basis discussed the way their participation in corporate governance and the impact of institutional investors on corporate governance. In empirical, using the latest sample of 2003-2009, using the broad definition of institutional investors, all the Shanghai and Shenzhen A share listed companies in the study. So the real situation can be understood comprehensively Second, amend and improve the existing model, using two indicators of corporate performance as a variable, namely the financial indicator ROE and the market value of the index TOBIN Q, so that research results more comprehensive.By constructing a model Empirical analysis of institutional investors on the performance of listed companies, empirical results support institutional investors has a positive effect assumption on the performance of listed companies. But the barriers the impacts of institutional investors on corporate governance still exist, such as the sizes of individual and overall of institutional investors are not enough; imperfect legal system; capital market inefficiencies. Based on this, how to promote the development of institutional investors, as well as the improvement of governance put forward several recommendations of its own, such as the great efforts to cultivate institutional investors, improve governance structure of institutional investors; establish and improve relevant legal systems, improve the capital Market. Maximize the positive role of institutional investors on corporate governance...