Institutional Investors And Corporate Governance

In the past thirty years, the institutional investors have developed dramatically and become one of the most important forces on the major capital markets worldwide, especially the US and UK markets. Meanwhile, the institutional investors are playing an increasingly important role in the corporate governance in these countries. Since the beginning of 1990s, the institutional investors have become one of the main corporate governance mechanisms, just as market for corporate control in the previous period. Institutional investor, as a corporate governance mechanism, has also become one of the significant subjects in the academic research of corporate governance.The research on corporate governance in China focuses mainly on internal governance. Furthermore, the research on external governance focuses on market for corporate control. There is no specific and systematic study of institutional investors. However, with a larger number of and more diversified institutional investors emerging in China, how to leverage institutional investors' monitoring to improve the governance of Chinese companies is a topic that may be meaningful to the future practice.Based on the above introduction, this thesis focuses on the necessities and the possibilities of institutional investors' participation in our country's listed companies' corporate governance, and provides some suggestions on how to promote institutional investors to participate in corporate governance.This thesis is divided into four chapters and illustrated as follows:In first chapter, I present the conception, the characteristics and the types of institutional investor. I define institutional investor as the professional and socialized group or organization that conduct investment in money market.In second chapter, I introduce the mechanism of improving corporate governance...