Analysis Of The Role Of Institutional Investors In The Governance Of Listed Companies

Along with investment institutionalism trend enhancing, institutional investors become one of the most important parts of the market gradually. Institutional investor's attitudes to corporate governance begin to change from passivism to activism. In U.S. and U.K., activism of institutional investors brings positive effect. But in China, because of many restrictions to institutional investor, institutional investors haven't exerted enough influences on corporate governance. Whereas institutional investors have exerted important function on corporate governance, it is necessary to establish and perfect law system to boost effect of institutional investor in corporate governance in China.This dissertation at first review the evolution and participating in corporate governance actively of institutional investor in developed country, with analyzing corporate governance structure and institutional investor in China, then discuss the necessity to set up new corporate governance model in which institutional investor play important role. According to above description, the essay proposes to establish the lawful mechanism of new corporate governance with institution-oriented model. This dissertation includes four parts besides preface and conclusion.PartⅠ: The author analyzes the attitudes of institutional investor to corporate governance. At first this part gives a definition of institutional investor, and then review the attitudes and roles of institutional investor to corporate governance in developed country, at the same time present the institutional investors'participation in corporate governance.PartⅡ: The writer discusses the status in quo and influence of institutional investor in China. This part mainly analyzes the types, scales and influences of institutional investor in China, and the attitudes and practice to corporate governance. With the help of above researches, the author draws a conclusion that it is feasible to set up new corporate governance model in China.PartⅢ: This part discusses the disadvantages of corporate governance structure and the necessity to set up new corporate governance institutional-oriented model in China. The author firstly issues the idea that the framework of equity doesn't match the inside corporate governance structure with the result of defect of corporate governance in China. At last, the writer advances to establish new model to remedy this disfigurement of corporate governance in Chinese listed company.PartⅣ: The author discuss the lawful design of enhancing the institutional investor's role in corporate governance in China : relaxing restriction to institutional investors, perfecting company law to ensure institutional investors to exercise right of shareholder handily, strengthening fiduciary obligation of institutional investors, and so on.