Incentive In Capital Market, Institutional Investors And Transparency Of Information

Using data of listed companies which have shares on SHENZHENEN EXCHANGEfrom2009to2012year, this paper study the influence of incentive in capital market ontransparency of information and the influence of institutional investors on thetransparency of information. This paper tests institutional investors whether to change theinformation of transparency at the presence of capital market motivation. The researchresult shows that listed companies which have motivation of equity refinancing willincrease the transparency of information. The motivation of avoiding delisting motivationwill have the opposite effect. In general, institutional investors can improve thetransparency of the company. However, different incentive in capital market will influencethe reaction of institutional investors. When there is risk of delisting, it is difficult forinstitutional investors selling heavy stock in a short time. Therefore, institutional investorsmay deteriorate the quality of information,vote with their feet. When there is motivation ofequity refinancing for the purpose of development, the institutional investors will havemore power to improve the transparency of information. This paper puts forward a newperspective on studying the corporate governance of institutional investors, extending theexisting related research about influence factors of information transparency.This paper has six chapters: The first chapter includes the introduction, researchbackground, significance, research methods, research framework and innovation; Thesecond chapter reviews the studies about institutional investors, motivation of equityrefinancing,motivation of avoiding delisting and transparency of information; The thirdchapter is about research hypothesis; The fourth chapter includes the process of sample andvariable selection, the design of the model and variable; The fifth chapter includes theempirical results and analysis; The final chapter is the summary for research, including theconclusions, enlightenment and the limitations of this paper.