Company Performance, Listed Companies’ Illegal Actions And Institutional Investors

Institutional investors, as a professional investmental institutions, has made rapiddevelopment over the past30years. It plays a more and more important role in capitalmarket, but also it plays an indispensable role in corporate governance. With the rapiddevelopment of information technology and transportation, the distance has been greatlyshorten between different stakeholders.The exchange of information between each other ismore frequent. However, the distance will affect the possibility of accessing to internalinformation and convenient degree. For investors, they can get more information about closeinvestment. They probably can gain nonpublic information through certain socialrelationships. So the geographical feature factor lead to get different information quantityand quality.Frequency and depth of the information communication between each other, to a largeextent, also depends on the geographical characteristic. It is likely to reduce the number ofcommunication between each other, which is far away.Different geographical features willlead to different cost for the exchange of information.It is important influence factors ofgeographical features including the distance between the each other.Basing on the aboveanalysis, this paper mainly studies the distance between institutional investors. Andinvestment will affect the performance of the investment and the probability ofviolation.Because institutional investors directly affects the likelihood and degree of theirparticipation in corporate governance.So as to affect the performance of listed companiesand the probability of violation occurred.This article is from the perspective of geography to study the effect of institutionalinvestors on the company’s performance.The study found that the different geographicalcharacteristics lead different performance.The closer distance of institutional investors andinvestment, the higher the stake of investor having, the better corporate governance of theinvestment and profitability will be, and its illegal actions happen rarely.