Research On The Influence Of The Institutional Investor Shareholding To The Capital Expenditure

In the twenty years of development history, the capital market in China has been plagued by the corporate governance problems deeply all the time. Although our country has made great progress since nineties, such as changing government functions, perfecting the law and regulation and so on, it still has lots of questions. These questions will affect the capital expenditure of the listed company, bring about lacking of the capital expenditure. Simultaneously, With the development of market-oriented economy and capital market, institutional investor of our country has developed at a very fast speed, and it has turned into major participator in the capital market of China. As the third party between controlling shareholders and individual shareholders, it has many advantages in aspects of scale, information acquisition, information analyst, employee structure and so on. With these advantages, the institutional investors have full ability to supervise the behavior of the controlling shareholders’embezzlement among the listed company. In addition, with the increase in the number of shareholding, taking into account of cost benefit comparison and avoiding loss of liquidity, institutional investors also have impetus to fulfilling function of supervision. Theoretically, institutional investors indeed have abilities and impetus to supervise controlling shareholder and management, but taking into account of particularity of listed company in China, the question that whether the institutional investor of our country can rise the effective supervision role needs to research.This dissertation is divided into five parts. The first part is the introduction of this dissertation outlining the background of topics, research significance, and the viewpoints of scholars both domestic and foreign. The second part includes theoretical studies and concepts. This part introduces the institutional investor and capital expenditure on the basis of Principal-agent Theory, Theory of Morden Property Ownership and Asymmetric Information theory, and discuss the feature and category in detail. Moreover, this part also analyses the current situation about institutional investor holding and capital expenditure of the listed company in our country with descriptive statistics. In the third part, this paper discusses the relation between institutional investor holding and capital expenditure firstly. Then it analyses how institutional investor holding affects capital expenditure. The forth part is analysis of empirical study. By choosing sample data and variable index, two multiple linear regression models are established. Then relativity research is un dertaken using the software of SPSS. In part five, the author outlines research and proposes the policy suggestion. Then the orientation of future study is prospected.The innovation and characteristics of this dissertation is that it researches that institutional investor holding influences with the characteristics of the capital market and the heterogeneity of the institutional investors. Finally, it puts forward the countermeasures that can optimize the decision on capital expenditure of the listed company in our country.