The Empirical Research Of Institutional Investors Participating In Corporate Governance In China

Over the past decade, along with quickly expanding， institutionalinvestors in China have become a very important force in securities market.With the expansion of the institutional investors’ scale and theimprovement of the securities market’s system, institutional investorsgradually began to affect the governance of listed companies in China.Then, how is the impact of institutional investors on corporate governanceof listed companies? Whether institutional investors improved theperformance of listed companies through their participation in corporategovernance? The thesis studied the impact of institutional investors in thegovernance of listed companies by taking them as potential positiveshareholders through theoretical analysis and empirical research, andwishes to provide a reference for the further development of institutionalinvestors in China, and offer some help in improving and standardizing thecurrent development status of institutional investors in China. This thesisreviewed the literature and theory of institutional investors and corporategovernance, and analyzed the motives and means of participation ofinstitutional investors in corporate governance. And then based on the dataof Shanghai and Shenzhen A-share listed companies, this thesis did theempirical tests about the relationship between institutional investors’ownership and governance and performance of listed companies usingmultiple regressions. This thesis derived this conclusion that institutionalinvestors improved the performance of listed companies throughparticipating in the corporate governance of listed companies. Butinstitutional investors in China are still at a preliminary period ofdevelopment, the degree of participation as well as the ability to play the role of corporate governance is limited, it is recommended to developinstitutional investors comprehensively and coordinately, to encourageinstitutional investors to take joint actions, and to relax the restrictionsabout proportion of shareholding for institutional investors.