Research On The Relationship Between Institutional Investors And The Efficiency Of Investment And Financing Of Listed Companies

Investment and financing behavior is one of the company’s business activities,maximizing the efficiency of investment and financing activities have a direct impacton the value of the company. At present, China’s listed companies are prevalent ininefficient investment and financing activities, seriously restricting the company’shealthy growth. How to effectively suppress the low efficiency of the company ’sinvestment and financing problems exist in order to improve the efficiency ofinvestment and finance academics and practitioners to become long-term issues ofconcern. Since the late1980s, the United States as the representative of the Westerndeveloped countries, the rise of a wave of capital market institutional investoractivism, institutional investors gradually become the backbone of the nations capitalmarket development in recent years, China’s institutional investors the rapiddevelopment of the stock market is becoming a pivotal force, their investmentbehavior and the impact on the market more and more attention. In this paper, basedon China ’s securities market, whether the efficiency of the company’s investment andfinancing to enhance the role of institutional investors has conducted research in orderfor the regulators and the company’s management policy to provide theoreticalsupport.This paper describes the use of standardized research methodology theory oninstitutional investors, corporate finance efficiency and other issues relateddiscussion. In this paper, the impact on investment and financing in the Efficiency ofinstitutional investors, is based on the judgment: institutional investors in favor ofinefficient investment and financing constraints, so as to improve the efficiency ofinvestment and financing company. Thus, the study of the relationship betweeninstitutional investors and financing efficiency clearly inefficient shareholdingrelationship between financing for research to institutional investors. In this paper, theproportion of institutional ownership and institutional characteristics institutionalinvestors holding time and three dimensions, put forward three hypotheses, toexpand further empirical research.Empirical findings: First, China’s institutional investors, in general adhere tothe concept of value investors, listed companies to improve financing efficiency playa role. Second, institutional investors longer listed companies to enhance the role ofthe more obvious financing efficiency. Third, with the listed company does not have the pressure of economic relations boycott type of institutional investors for listedcompanies to improve the efficiency of investment and financing effect is veryobvious.Finally, we make recommendations based on research findings: Institutionalinvestors should continue to develop, adhere to the diversified development ofinstitutional investors, institutional investors, investment threshold to respondappropriately lowered, while institutional investors focus on improving their ownquality, improve internal governance institutions structure, improve and enhance theparticipation of institutional investors in corporate governance mechanisms and theability to promote institutional investors insist on value investment philosophy, toplay its monitoring role on major decisions listed companies, listed companies torestrict inefficient financing.