The Comparative Research On Institutional Investor, Intervention In Corporate Governance Of Listed Companies In China And The United States

China securities market is restarted since the1990s, and it is in a short developmenthistory, but it played a large role of the development of national economy and the reform ofstate-owned enterprises. Compared to western developed market economy countries’ morethan three hundred years of development history, the Chinese mainland’s capital market isdeveloping rapidly in a short time at the same time, but there are many problems which areexposed. One obvious problem is the company’s governance of public companies.In the1980s with developed market economy countries such as America and Britain’sinstitutional investor actively participating in the governance of public companies, goodgovernance effect is showed. It become an important study direction of the of publiccompanies’ governance. Because of this, the China securities regulatory commission iscorrespondingly put forward capital market strategy of extraordinary development ofinstitutional investors which encourage institutional investor actively participating in thegovernance of public companies and stable capital markets. So, a comparative study whichfocuses on the institutional investors to participate in the governance of public companiesamong China and the United States has the very vital significance in this paper.Research idea of this article comes from the influence of the research method of newinstitutional economics, such as institutional evolution theory and comparative institutionalanalysis, etc. Through the perspective of new institutional economics, the paper takes acomparative study of institutional investors’ governance system between China and theUnited States. And based on transaction cost theory, principal-agent theory, property rightstheory and institutional change theory, which are the core theory of new institutionaleconomics. Through comparative study, this paper puts forward the perfection of Chineseinstitutional investors’governance system and the development Suggestions.