Institutional Ownership And Financing Structure Of Listed Companies In Empirical Research

With our capital markets development and improving, our institutions investors have affected the company's decisions and control level. They apply their positive influence to improving the company's governance. Because financial structure has play an important role in the company's decisions and institutions investors has more and more important affect, this paper analysis the relationship between the proportions of institutional shares and the assets-liabilities structure. This paper analyzes institutional shareholder activism in financial structure terms. Inspects them whether can take on the heavy responsibility of company, whether can take the participation to be listed company governs, whether can make the company to perfect the financial structure. To try to supports the evidence for the management level to develop institutional investors.This paper draws on the experience of the researchers and scholars'prior research and makes financial structure theory and institutional investor taking part in the company's governance theory as the theoretical foundation. Our research regards the listed companies in Shanghai and Shenzhen Securities Markets from 2007 to 2009 as the research subject. We analyze the relationship between the proportions of institutional shares and the financial structure. We also analyze the quality of the variables and the trends of the variables in recent years. And at the same time, we get some evidence in support of the hypothesis. Then, before the regression analysis, we calculate Person correlation analysis among those variables. We get some ideas of the correlation of the variables and find there is not multicollinearity among those variables. This has reached a basis for the next regression analysis. In the end, we build regression models to research whether the institutional investors affect the listed company's financial structure, what affections the institutional investor exert on the listed company and how the institutional investor affect the financial structure of the listed company.After careful empirical research, we find that institutional investor has a notable impact on the financial structure of the listed company. There is marked qualitative difference between the companies which shares are held by the institutional investor and which shares are not held by the institutional investor. And the more shares are held, the greater affection are. A negative correlation was found between the proportions of institutional shares and the asset-liability ratio. The proportions of current market prise of the listed company are correlated positively with the proportions of institutional shares. The proportions of the listed company current liabilities are negative correlated to the proportions of institutional shares.In the end, this paper offer a proposal based on the conclusions. Optimize the external environment of the development of the institutional investor. Improve their strength and quality. Establish effective incentive and restraint mechanisms for the institutional investor. Strengthen the system and legal construction for the institutional investor to play a role.