| In the past years,the institutional investors have developed dramatically in China, they have become an important force on security market gradually, and more and more attention have been paid to them, especially on their investing-behaviors and investing-influences on the market. Therefore,The paper do research about the relationship between institutional investors'shares-proportion and Enterprise Intrinsic Value from Value-investing behaviors to Value-promoting effects based on our present security market, and aim to be helpful for the government to manage them.The research methodology adopted in the paper is the combination of normative and positive research method.The normative research method has been used in theory expressions. For the two concepts: institutional investors and enterprise intrinsic value, the author has creatively given her own definitions and creatively given the intrinsic value assessment system.The positive research method has been used in empirical analysis. Firstly, the average intrinsic value of China's securities market as a whole has been measured. Then, it is a creative summary description of the overall development of shares-proportion of various institutional investors and listed companies'intrinsic value. Subsequently, for the relationship between institutional investors shares-proportion and enterprise intrinsic value, 4 hypotheses has been studied about two directions from"value-investing"to"value-promoting".From the positive analysis, some results are found as follows: First, in recent years the intrinsic value of the overall China's securities market has increased gradually, but in 2006 the market remains overvalued. Second, although their dramatic development, the institutional investors'holdings in the entire market share remains small. Among them, Security Fund has obtained fastest-growing. And QFII, Social Security Fund, Insurance Fund, and Enterprise Annuity also have been developed, but their growth slower than Security Fund. In particular, Enterprise Annuity still has a great potential for the development. Third, the overall intrinsic value of listed companies maintain stable level, there was no rapid improvement. Fourth, China's institutional investors, on the whole, being rational in choosing a relatively good performance of listed companies to invest, are "value investors". Social Security Fund has the most prominent tendency, and those of Equity Fund and QFII are also obvious, but the trust invest companies do not show the same characteristic. Fifth, after institutional investors'holding of shares of listed companies, their enterprises intrinsic value has improved, but not significantly. Therefore, we can have a preliminary view that the institutional investors only have some characteristics of "value-promoters".Finally, in accordance with the conclusion of the paper, the author has made recommendations that the government should continue to vigorously develop institutional investors, improve the structure of institutional investors, especially to develop Social Security Funds, Securities and Corporate Pension Funds, while improving the quality of listed companies and improving the corporate governance mechanisms for institutional investors to participate in, so that to promote institutional investors'"value-investing" behavior and "value-promoting" role. |
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