The Impact Of Different Types Of Strategic Investors On Corporate Performance

Strategic investor refers to the legal person who has close business relationship with the investee, and intends to hold stake over the long term. Strategic investors not only supply the investee with funds, but also improve companies’technology and management. After the foreign strategic investors introducing boom in Chinese companies include commercial banks, now there is a new phenomenon that more and more companies introduce prominent Chinese companies as their strategic investors.Scholars make different conclusions on the impact of strategic investors to the investee companies. Some studies shows that the shareholding ratio of strategic investors, the proportion of board member of strategic investors and the shareholding ranking of strategic investors are positively correlated with the investee companies performance. Other studies proved that strategic investors bring negative impact to the investee companies, cause the decent of their financial performance.This paper divides strategic investors into competitive, complementary and independent strategic investors according to their business and industry specialties.For the three different types of strategic investors, the paper analyzes the impact of their shareholding ratio, proportion of board member and number on the investee companies’ performance based on the panel data of140manufacturing listed companies from2007to2011in China.The result of this study shows that the shareholding ratio of competitive and independent strategic investors are significantly converse "U" correlated with company performance, while the shareholding ratio of complementary strategic investors is significantly positively correlated with company performance. Then, the proportion of board member of competitive and independent strategic investors is significantly negative correlated with company performance, while the proportion of board member of complementary strategic investors is significantly positively correlated with company performance.There is different between the impacts of the number of the three type strategic investors to the investee companies. The result demonstrate that the company must consider the similarity with the strategic investors then negotiate the shareholding ratio of strategic investors, the proportion of board member of strategic investors and soThis paper innovation lies in divides strategic investors into competitive, complementary and independent strategic investors according to their business and industrial specialties, then have a conclusion of different strategic investors have different impacts on the investee companies performance. This conclusion makes an explanation to the previous contradict conclusions. Moreover, the objects of this study include domestic strategic investors and overseas strategic investors, which keeps up to the developing trends of the companies introduce strategic investors in China. Thus the study has practical significance for Chinese companies.