Research On Chinese Institutional Investors Participating In Governance Of Listed Companies

Since the 1980s, institutional investors participation in the corporate governance of listed companies has attracted increasing attention. The development of institutional investors in Western developed countries shows the positive effects on the corporate governance of listed companies. But in our country, there is still a long way to go for the capital market, and under current financial circumstances whether institutional investors can play an active role in the corporate governance of listed companies is an uncertain problem. Therefore the study of this problem is of great significance for the development of our capital market and listed companies.By integrating theory with practice, this paper studies the condition of institutional investors participation in the corporate governance of listed companies in our country. Firstly, after a review of some basic economic theories, the current situation and practical experience of institutional investors participation, both at home and abroad, is compared and analyzed. Then the motive and means of institutional investors participation is listed by a comprehensive analysis, and besides, a regression model is built to test the influence of institutional investors participation in the corporate governance of listed companies. The results of calculation show that, in our country, there is a positive correlation between the ratio of shares held by institutional investors and corporate performance, and institutional investors participation can definitely promote the corporate governance of listed companies. At last, in order to improve the participation condition, some suggestions are put forward and it is hoped that they are conducive to the sustained, quick and healthy growth of our listed companies.