Based On Institutional Investors In Corporate Governance Research

Enterprise system can be classified classical enterprise system and modern enterprise system which on the main position currently. Modern enterprise system has three characteristics: 1, stock right is dispersive and decentralizes and diversity; 2, the way of financing is diversified; 3, proprietary right and the power of operation are separable. Those characteristics make all the people pay close attention to corporate governance, and it also become an important researching field of Modern Economics since 1980's.Along with the development of Institutional Investors, they are become a active group in modern capital market, recently, they are not confined to the traditional profit-making modern depending on the gap between the buying price and selling price of the stocks, on the contrary, they begin to seek profit by the way of improving the achievements and core competence of corporation through strengthening the corporate governance. How about the Institutional Investors? How Institutional Investors participating the corporate governance? Answer those questions are a huge task for the relevant government department and the listed company, and which also make plenty of theoretical and practical implications.This paper includes four parts. Chapter 1 takes a view of the theory of the corporate governance and analyzes all the theoretical viewpoints of the institutional investors participate the corporate governance. Chapter 2 summarizes the disadvantages and advantages of the United State after introducing the institutional investor's activism, the current condition of institutional investors and the way how to participate the corporate governance. Chapter 3 mainly researches our country's performance, this part of researches introduces the need, the degree of involvement and the efficiency of institutional investors participate the corporate governance which carries out by experimental analysis, then the results suggest that corporate performance is positively related to the institutional ownership, though the degree of the involvement is lower. Chapter 4 brings forward advises for how to regulate the behaviors of institutional investors in China, and suggests that we need provide support from four aspects which contain strengthen the building of law, the corporate governance of the institutional investors and the listed company and perfect the capital market.