Research On The Relationship Between Institutional Ownership,minority Investor Protection And Information Disclosure Transparency Of Listed Companies

Currently, information disclosure transparency of listed companies has attracted tremendous research interest. For investors, real and reliable information can ensure them to make a right economic decision. Institutional investors, as a product of the continuous development of capital markets, not only owning a solid financial strength and professional management, but also holding a higher stake and participating actively in corporate governance, which enables them to express their views and supervise the company operating activities effectively, thereby affect the information disclosure transparency of listed companies.Herein we introduce the Shenzhen Stock Exchange main board listed companies as the research object. Two different cases are selected: research institutional ownership’s impact on the information disclosure transparency of listed company whether the minority investor protection is weak and strong. These objects then are investigated for exploring the ways to improve the information disclosure transparency and the allocation efficiency of social economic resources. These effects, to a large extent, have very important practical significance to promote and develop our country securities markets.Firstly, this paper selects a total of 744 observations of listed companies from 2012 to 2014 via the Shenzhen Stock Exchange main board. The minority investor protection index model is carried out by adopting coefficient of variation method via the six aspects: the investors’ right to be informed, return on investment, corporate governance structure, the equal rights of the shareholders to the interest of the company, the value of the company and the company integrity, then calculates the variation coefficient of different indicators for each level, and synthesizes the small and medium investor protection index as a whole of the listed companies.Secondly, after ranking the minority investor protection index from small to large, we select the top 372 data as a group of the weaker minority investor protection; Similarly, the last 372 data as a group of the stronger minority investor protection. Regression model is employed to make regression analysis between institutional investors and information disclosure transparency, and the results indicate that, in the group of minority investor protection weaker, the number of institutional investors in the top 10 shareholders and the shareholding aggregate have significant positive effect on information disclosure transparency. In simple regression, the relative shareholding proportion of institutional investors in the top 10 shareholders has significant positive effect on information disclosure transparency, however, significance decreased after joining control variables. In the top 10 shareholders of the group of minority investor protection stronger, the number of institutional investors, the shareholding aggregate and the relative shareholding proportion do not have significant positive effects on information disclosure transparency. Thus, institutional investors can play a certain substitution effect while the minority investor protection is weak.Finally, this paper puts forward corresponding policy suggestions in view of institutional investors and minority investor protection, aims at improving information disclosure transparency of listed companies.