Study On Effects Of Institutional Investors’ Shareholding Ratio On It Public Companies Performances Of China A-share

Institutional investors can usually through its emphasis on long-term investment andvalue investing，and form an important governance mechanism outside the company to playan active role in the governance of public companies, and improve corporate performance. Inthis view, in recent years, China’s government regulators issued a series of policies andmeasures of promoting the development of institutional investors, so various types ofinstitutional investors have received rapid development. In the end of2007, the split sharestructure reform basically completed, marking China’s securities market entering into thecirculation period, and these will give institutional investors the right to speak, so that theinfluence to performance of the company is also increasingly important.As an emerging industry category, the information technology industry develop late butrapid,and institutional investors will bring new development opportunities,the effects by thecombination of these two is also worthy to study and reference.In this paper, using the specification and empirical research methods, basing onreviewing and combing the basis of domestic and foreign literature and research, summed upthe course, progress and the current research status on domestic and foreign institutionalinvestors on corporate performance, and regarding the effects of institutional investors on firmperformance as research topics, selecting the2007-2010financial data of Shanghai andShenzhen listed companies of information technology industry, analysis institutional investorsabsolute and relative changes in ownership and corporate performance indicators, usecomparative analysis and multiple regression analysis method to empirical research theimpacts of institutional investors holding the absolute percentage and the relative proportionon different performance indicators of listed companies.The results show that: the absolute shareholding ratio and relative stake of institutionalinvestors have a positive effect on the company’s performance in the information technologyindustry,,, the higher of institutional investors holding ratio and the degree of checks andbalances of the major shareholders, corporate performance will be better. The effect of theproportion of institutional ownership on the performance of the companies represented by the main business assets yield is obvious than the return on net assets on behalf of corporateperformance.The results of this study on the information technology industry listed companies andinstitutional investors have a theoretical reference, combined with the conclusions of thestudy about the effects from the proportion of institutional investors on corporate performance.From the development of institutional investors and to deepen the level of participation ofinstitutional investors in the company to improve the ownership structure and corporateperformance, the article suggests some points about the healthy development of institutionalinvestors and information technology industry.