Institutional Investor Shareholding And Performance Of A - Share Listed Companies

This paper examines the relation between institutional investor holdings and the corporate performance from an ownership structure perspective. Adopting data in Chinese A stock market from the period of2009to2011, institutional investor holdings are found to be a significant and positive determinant of corporate performance measured by proxies of EPS, ROA, ROE and ROIC. Particularly, when taking the ownership structure into consideration, institutional investor holdings act significantly in the role of improving corporate performance under competitive ownership structure, which is the case that the controlling shareholder has limited stakes. On the contrary, institutional holdings have a negligible impact on corporate performance, under the oligopoly and monopoly ownership context.