A Study On Institutional Investors’ Share-holding And Corporate Transparency

The disclosure of information is an important link between the listed companiesand capital markets; the level of disclosure quality directly affects the effectiveness ofthe capital market and the socio-economic resource allocation efficiency.Accompanied by the growth of institutional investors, the shareholding ratio increases,the impact of institutional investors on the capital market has become increasinglyevident, they are no longer passively accept the information disclosure of listedcompanies, but more actively participate in the corporate governance andrequirements to obtain higher quality information. More and more people payattention to the study of the relationship between institutional investors and listedcompanies information transparency.Article aims to research on information transparency of listed companyinfluenced by institutional investors which participate in corporate governance. Onthe basis of theoretical analysis, we selected the observations of the Shenzhen StockExchange from2007to2011, a total of1774samples listed companies. It regards theresults of information disclosure assessment by SSE as corporate informationtransparency and makes an empirical test of the relationship between institutionalinvestors and information disclosure of Chinese listed companies. The results showthat institutional investors’ share-holding can play a positive role in corporateinformation transparency. We also make a classification test, the results confirm thatdifferent type of institutional investors play different role in the informationtransparency of listed companies.