Research On The Influence Of Institutional Investors' Shareholding On Corporate Performance

In recent years, the group of institutional investors has developed sharply in china, and it has become an more and more important force in capital market. The question about whether the institutional investors take part in corporate governance of listed companies has aroused the attention of the scholars. If the institutional investors really can improve corporate performance through corporate governance, then they can supervise the quality of listed companies as an important administrator so that they can upgrade the efficiency of the whole capital market, therefore, it is necessary to study the relationship between institutional investors and corporate performance thoroughly.Firstly this paper puts up with the definition and the range of the institutional investors. Secondly it combines domestic and overseas research of relationship between institutional investors and corporate performance. And then it points out the shortage in these papers about this question so that it can be the basis of the empirical of research. Thirdly, it indicates the reason for institutional investors affecting corporate performance through the basic theory and the complexity in this question. Furthermore, it discusses the mode which institutional investors use to improve corporate performance according to theories. Finally, it put up with hypothesis which is used in empirical research and then obtains the result, and then it points out some suggestion.It obtains these results as follows through empirical research:1. the performance of corporate which in the range of the institutional investors' shareholding is better than that of corporate whose shareholder is not related with institutional investors obviously.2. institutional investors have the motivation of creating value:there is a significant positive correlation of corporate performance and the panel data of shareholding of institutional investors in Chinese company.3.The power balance with shareholding and corporate performance variables are significantly correlated.4. There is no difference between the longer-shareholder of institutional investors and the shorter ones in the aspect of improving corporate performance.Finally, it comes to these conclusions:firstly, it is necessary to develop institutional investors energetically to reform the structure of institutional investors. Secondly, Improving management of corporate gradually to raise the inner value of listed company to provide institutional investors good surroundings so that they may have more incentives to take part in corporate governance. Lastly, Consummating related laws and regulations to make institutional investors perfect law surroundings so that they can make their contributions to improving corporate performance and then finally to improve the development of the whole capital market.The point of innovation:Firstly, it applies the OLS to eliminate the influence of institutional investors on corporate performance. Secondly, it discusses the relationship between institutional investors and corporate performance in terms of the time of institutional investors holding shares. And the result indicates that shorter time- institutional investors rarely have the incentive of speculation, but to involve in corporate governance like the longer ones to improve corporate performance.