Study On The Correlation Between Strategic Investors And Corporate Performance Of The Listed Companies

It has been over a decade since the introduction of strategic investors by listed companies in China. In the environment of economic globalization and intense market competition, more and more listed companies have started to involve strategic investors in the management. However, it has been a controversial over the topics such as whether the strategic investors could help improve the performance, in which aspect strategic investors could help and what the effect might be brought by them. Domestic and abroad scholars have reached different conclusions after researching on companies with strategic investors. Some say strategic investors holding shares could improve performance of the company; some say it does not make much difference since strategic investors and average investors are alike. Some scholars even consider the investment of some of the strategic investors are shot-time and may have negative influence on the long-term development of the company. Therefore, the research on the relation between strategic investors and the performance of listed companies is of important theoretical and practical significance.The paper picks137companies out of185H-share companies listed on the Stock Exchange of Hong Kong during1999to2012; divide them into68sample companies with strategic investors and69companies without strategic investors. With the reference of previous research documents, the paper first analyze the characteristics and effects of strategic investors theoretically; secondly, the paper build models using regression analysis method, and discuss the relationship between strategic investor share-holding and the growth, performance, and value of the listed companies.Research shows the following results:first, the involvement of strategic investors can profoundly improve the growth of the listed companies; secondly, the involvement of strategic investors can profoundly improve the performance of the listed companies. Finally, the involvement of strategic investors cannot profoundly improve the value of the companies; there is no obvious relation between value of the companies and the involvement of strategic investors in the management. Suggestions according to the research results:1. The government should issue relevant legal standard and regulate strategic investors in macro-scope.2. The listed companies should choose suitable strategic investors after thoroughly analyzing the inner and outer environment.3. Proper method should be used to solve the problem of integration after involving strategic investors in the management.The research of H-share, the most similar stock to mainland stock, not only offers reference to the mainland listed companies involving strategic investors, but also to the development of strategic investors in the mainland.