A Study About The Impact On The Institutional Holdings To Earnings Persistence Of Listed Companies

The rise and development of global institutional investors is an important trend in the past three decades on the capital market as a new influential group of investors, institutional investors have a strong information collection and analysis capabilities, and Perfect decision-making system,its play an important role in corporate governance, information disclosure, asset pricing and other aspects.With the development of China’s capital market, institutional investors’ behavior had a significant impact on company performance and earnings quality.Accounting earnings have information content, earnings persistence as an important attribute to reflect the quality of accounting earnings, and its essence is reflected in the quality of the management of the business, its play an important role for the development of the company.Explore the role of different types of institutional investors holding the behavior of the company’s surplus earnings persistence institutional shareholding of sample classification based on the first sample is divided into independent institutional investors held company sample and non-independent institutional investors held company sample, characterized by institutional investors ownership concentration to test its impact on earnings persistence.An Empirical Analysis of China’s A-share market data, research draw the following three conclusions:First, China’s A-share market listed company earnings persistence, and cash flow continued to be higher than the continued accrual accounting; the higher the proportion of the overall holdings of institutional investors, company earnings persistence three independent institutional investors holding, a large proportion of company earnings persistence higher proportion of non-independent institutional investors holding the persistent surplus of listed companies a significant impact; Fourth, institutional investors holding the higher the concentration of the higher earnings persistence.This study is structured as follows:first introduces the research background, research purpose and significance of research, research methods and research innovation; detailed review of institutional investors holding behavior and the company’s accounting surplus research literature, and the previous literature Commentary; then propose hypothesis, build a model and empirical analysis of the relationship between the two, concluded; Finally, the conclusions of the study summary and analysis, to put forward policy recommendations, summary of the research, and proposals for future research outlook.