The Impact Of Institutional Investor Heterogeneity On The Performance Of Manufacturing Enterprises

Since the 21st century, the type of Chinese institutional investors is increasing constantly, and the scale is expanding rapidly, institutional investors became the indispensable power of China’s stock market to mature, because the main body of a mature stock market is institutional investors. Due to the difference between institutional investors and the invested enterprises in the relationship benefits, stock holding period, stock holding quantity and other aspects, the heterogeneous institutional investors will make a difference in the performance of the invested enterprises. At present, Chinese manufacturing industry is at a critical stage of transformation and upgrading, from the perspective of heterogeneity to explore whether institutional investors shareholding in favor of changing the performance of manufacturing enterprises has important practical significance.From the perspective of heterogeneity, on the one hand, taking institutional investor groups as a unit, according to institutional investors and the invested enterprises whether there is commercial intercourse, institutional investors can be divided into pressure resistant institutional investors and pressure sensitive institutional investors, and then to study whether they have different effects on the performance of Chinese manufacturing enterprises; on the other hand, taking institutional investor of holding the equity of single enterprise as a unit, according to their shareholding is to obtain long-term investment income, or in order to obtain short-term speculative gains, they will be divided into investment type institutional investors and speculative institutional investors, and then to study the difference of the effect of their shareholding on the performance of Chinese manufacturing enterprises.This paper taking the data of 2012-2014 China’s Shanghai and Shenzhen A-share manufacturing enterprises as samples, using multiple linear regression analysis method to study whether the heterogeneous institutional investors enable to cause different changes in Chinese manufacturing industry enterprise performance. The study found that the pressure resistant institutional investors and Chinese manufacturing industry enterprise next performance has a significant positive correlation, but there was no significant correlation between pressure sensitive institutional investors and Chinese manufacturing industry enterprise next performance; in the manufacturing enterprises with institutional investors holding shares, investment type institutional investors can effect the enterprises performance, but speculative institutional investors cannot. The results show that the different nature of institutional investors holding shares will make the performance of manufacturing enterprises have different changes. Therefore, our country should regulate and restrict the holding behavior of institutional investors, and guide institutional investors from short-term speculation to long-term investment, encourage institutional investors to participate in corporate management and provide proposals of strategic decision-making for the manufacturing industry transformation and upgrading, improve the company’s performance fundamentally, and make contribute to the stability and the further development of our country’s capital market.