Empirical Research On Impact Of Institutional Investors Holding On Corporate Value

In2004also made in China, promote the development of market reform tostabilize the market, and highlighted by the introduction of institutional investors toimprove the structure of China stock market investment, from relying on the listedcompany’s own development and listed company policy to rely on market forces toprovide motive power of development. With the end of2005, China’s a-sharemarket share-trading reform, a large number of non-tradable shares lifted, providedconditions for institutional investors a lot into the stock market. As of2008, theshare of investments of institutional investors in the stock market in China hasaccounted for50%of circulation market value. The rate of development is very fast,has become the main force of China’s securities market. Based on the rapiddevelopment of institutional investors, this paper stresses the influence ofinstitutional investment value of listed company of research on this issue, thepremise of behavioral characteristics to shareholder activism, by the principal-agenttheory, the stakeholder theory, systems theory, contingency theory as guidance, toregulate the method of combining research and empirical research, institutionalinvestor ownership and corporate value in the study of the relationship between.This study reveals the relationship between institutional investors and corporatevalue, and formulate practical guidance for enterprise management, has a veryrealistic effect.By China’s a-share market in2006to2010five years of data for analysis,institutional investors in our country as a whole, when in select stocks, will chooseto have a higher value enterprises of the company. One of the most representativebody of investment types including securities investment fund, social security fund,QFII, the index of the value of their company are more concerned about, they areadhering to the value investing philosophy, investment value of listed companieshave been in the process of selection. Value investments of insurance companiesand brokerages are not well implemented. According to statistics, enterpriseannuities, trusts, financial companies in the proportion of institutional investors inthe smaller, do not form a large institutional investor in China. Found in research ininstitutional investor ownership changes,, Tobin Q changes in the market value ofthe stock ownership and institutions change in a significant positive correlation, suggesting that institutional investors to value investing, which enhance the value oflisted companies, is not only the market value of enterprises, including the intrinsicvalue of the company.