An Research On Relationship Between Capital Structure And Institutional Investors’ Stockholding Of Listed Tourism Company

Research on the relationship between capital structure and institutional investors’ stockholding of listed company has been rapidly becoming the focus both in theory and in practice. But the conclusions differ greatly, for the different samples, methods and indicators. With the fast development of our national economy, the listed tourism companies have become an important part of listed companies in China. With its own nature, listed tourism companies are special in financing, management structure and financial decision-making. Financing strategy plays a crucial role in corporate controls distribution among shareholders, debtors, managers as well as other stakeholders. The apparent link between capital structure and corporate governance, which further influences a company’s performance, also have impact on whether institutional inv-estors hold the shares or not. What’s more, institutional investors guide managers to choose optimal capital structure which benefits the development of the company thr-ough supervising and intervening the business activities of managers. The research on the relationship between capital structure and institutional investors’stockholding have theoretical and practical significance to promote the tourism companies develop healthy.Firstly, this paper summarizes the relevant theoretical basis and literature review about theoretical research on capital structure, the relationship between capital structure and corporate governance, institutional investors’participation in corporate governance and the relationship between capital structure and institutional investors’ stockholding, then analyzs the drivers, methods, effectiveness of institutional investo-rs’participation in corporate governance and the relationship between capital structure and corporate performance to make preparations for further research.Secondly, based on the analysis of the listed tourism companies’basic situation of the capital structure and institutional investors’stockholding, this paper expounds mechanism about capital structure and institutional investors’stockholding. Following the rapid development of the national economy, the capital structure and the institutio-nal inveors’stockholding of the listed tourism companies are not ideal but full of problems.Thirdly, based on above research foundation and mechanism analysis, we estab-lishs the research hypothesis, chose the five years data of22China’s listed tourism companies as study sample, and then employees SPSS and STATA for statistical analysis and draws up a series of conclusions from descriptive statistical analysis, correlation analysis and regression analysis. The empirical study showed that instituti-onal investors were willing to hold listed tourism companies shares with a low ratio of financial leverages and a high ratio of current liabilities; the ratio of financial lever-ages and current ratio had a reverse impact on institutional investors’stockholding, but the long-term debt ratio and concentration of ownership had a positive impact on insti-tutional investors’stockholding; as an intermediate variable, corporate performance’s intermediate effect was significant; institutional investors’stockholding and company size have a significant negative impact on capital structure, company growth has a weak positive effect on capital structure.Finally, the empirical results and results inspirations are analyzed; some innovati-ons and weaknesses about this paper are explained; future research directions are prospected.