Analysis On The Impact Of Medium&Small Sized Investors Protection On Corporate Value Of China

The concept of “financial consumer” is closely related with the financialeconomy rising and diversity of finance. Especially after the financial crisis, thefinancial consumer protection as one of the core measures of financial reform hasbeen raised to a higher level by the developed countries. But in our country, thepattern is not well adapted to the development of modern finance, because financialconsumers and investors are protected by different agencies. First, the boundaries ofthe traditional investment activity and consumer behavior in the modern financialcommunity has become increasingly blurred. What’s more, due to asymmetricinformation and complexity of the financial products, individual investors’ ability ofunderstanding financial products and judging risks is generally low. And its judgment,decision-making capacity and ability to withstand risks increasingly close to or equalto the consumer. From this point of view, the identity of investors and financialconsumers is not in conflict, small investors are financial consumers. Investors arerecognized as financial consumers here and I will do a study about the impact ofindividual investors’ protection on corporate value on behalf of financial consumers.Small investors are the individual investor who are not entitled to control overthe company. They are the main part of the securities market and play an importantrole in the market. But their interests are often hurt, which will damage enthusiasm ofthe investors and be bad to the companies and the market. In order to ensure thehealthy development of the securities market, maintain investor’s confidence andenhance the company’s financing capacity and efficiency, good protection about smallinvestors is needed.