Institutional Investor Holding, Corporate Growth And Corporate Performance

The growth enterprise market(GEM) have played a key role since its establishment, in solving the problems of small and medium-sized enterprises financing difficulties and the slow pace of the industrialization of the high technology,but the venture board market known as a low threshold, high investment risk. In the GEM companies, mostly in the life cycle of the early stages of growth,there is no stable record of profitability, development prospects are very uncertain.From the actual stock price volatility, The volatility of stock price in GEM is much higher than the motherboard market, many individual investors interested in short-term speculative behavior is one of the main reasons for this problem. In the face of these problems, institutional investors came into being, and with the development and perfection of the capital market, institutional investors as an independent force of growing up. So whether institutional investors in the GEM market plays what role? Whether the holdings of institutional investors can affect the growth and performance of corporate in the GEM in reducing short-sighted behaviors of individual investment ? on this basis, what is the relationship between institutional investors and corporate growth and performance ?This paper carries on an in-depth study in view of the above problems, first of all,Carrying and combing a summary of the system of relevant literature about domestic and foreign institutional investors, company growth and performance,Secondly,carry out a systematic theory analysis of the the development of institutional investors and the relevance of the relationship between institutional investors and corporate performance, between the institutional investors and the growth of the company,and between institutional investors and corporate growth and corporate performance.And then put forward the research hypothesis respectively. Using stata11.0 statistical software for descriptive statistics, correlation analysis, and multiple linear regression analysis on the companies of the institutional investor shareholding ratio,company growth and corporate performance of the GEM listed in 2011-2014. And on this basis, further studying on the impact of institutional investors on the growth ofthe company; the influence of institutional investors on corporate performance and the relationship between corporate growth and corporate performance, and institutional investors. The study found that:1.Owning to its characteristics and the surrounding environment, institutional investors have the motive power and the ability to make a contribution to the corporate governance, thus improving the performance of the company, so in the GEM listed companies, the higher the proportion of institutional investors holding,better corporate performance.2.Compared with individual investors, institutional investors can not only overcome the "take a ride" behavior of personal investment, and can be in the board of directors as a relative concentration of controlling shareholders to supervise the daily operation and management of the enterprise. As a result, institutional investors with its advantage of the collective interests have made a great contribution to the growth of corporate. So in the GEM Listing Corporation, higher proportion of institutional investors holding, the better the company’s growth.3.Because the proportion of institutional investors holding has a positive effect on the company growth, and the company growth play a positive role to improve the performance of the company also, in addition, between institutional investors and corporate performance is correlation. On this basis, we can verify whether the company’s growth as an intermediary variable, has a mediating effect in the process of institutional investors have an impact on company performance. That is whether the influence of institutional investors on corporate performance be passed by the company’s growth. This paper constructs the related model and set the comprehensive variables of institutional investor shareholding ratio and the growth of the company for regression test. The results showed that the effect of institutional investors on corporate performance through the growth of the company to transfer, and the mediating effect of significantly.