Research On Information Transparency Of China's Listed Company Influenced By Institutional Investors

Financial information and various non-financial information of the listed companies is a basis for investors to make investment decisions. Information transparency of listed companies which includes voluntary disclosure and mandatory disclosure can mitigate the information asymmetry between large shareholder and minority shareholders, thus affecting the investment decisions of investors, thereby affecting the efficiency of capital markets. At the same time, institutional investors are developping rapidly, they have become one of the important factors to afffect listed companies'information disclosure behaviors. All of this make the relations between institutional investors and listed companies'information transparency become an important research topic,in this paper we will do some theoretical analysis and empirical testing.At the theoretical aspect, we will take the Asymmetric information theory and the principal-agent theory as basis,then analyze the dual agency relationship characteristical of the institutional investors, laid the tone of Institutional Shareholder Activism. The institutional investors not only have the ability but also have the propulsion to affact information transparency through the way of voting with hand and voting with foot. Then we give some specific analysis to different types of institutional investors. At the empirical aspect, we take Shenzhen A-share listed companies 2007-2009 three years datas as samples,deviding two groups according with whether the institutional investors have the holdings or not, then using independent sample T test and Mann-Whitney U rank sum test method to do some comparative analysis. As the effect of institutional investors'holding proportion on information transparency, we take multiple regression method to test. Study found which is invested by insitutional investors has higher information transparency; and a higher and higher information transparency followed with a higher and higher insitutional investors'holding propotions. Also we make some empirical testing to examine different institutional investor types'effect. At last, this paper put forward some specific recommendations and further research prospects.