The Empirical Research About The Relationship Between Institutional Investors Share Proportion And Corporate Performance

When it comes to company management, the equity structure of corporation is the foundation of the corporation governance; for the most part, the corporation governance impacts the corporation performance. In other words, there is a close relationship between the equity structure and corporation performance. In the beginning of the1980s, the mastery of the listed corporation is in the hands of state-owned shareholders and legal person shareholders and these stocks can’t roam in the markets so that the phenomenon that shares are highly centralized appears. By the late1980s, the restriction of the policies, regulations and system of government has reduced, the behavior of institutional investors has become more active and the influence of listed corporation become more and more deep. But the supposition that Institutional investor exerts its effect by theactive shareholder activities and it is important for the improvement of corporation performance is still discussed around the word. This paper is based on it and research methods used at home and abroad to make an empirical analysis.This text has five chapters in all. The main content follows:The first chapter, introduction. In this part, the author introduces the background and significance of the topic, some concepts of institutional investors (such as definition, and characteristics).and forcing on the development of different types of institutional investors and evaluation index of the corporation performance.The second chapter, literature review. Through summarizing of domestic and foreign literatures that has relationship with the problem, the author would find out some innovation parts in this paper.The third chapter, theoretical analysis of institutional investors influenced on corporate performance, laid the foundation for the following research.The fourth chapter, the design and testing of the empirical analysis. Specifically speaking, put forward the hypothesis, selecting the variables, introduce the rules of choosing sample dates, descriptive statistics, tests panel data that including unit root test, cointegration test and ranger causality tests, choose the model between hybrid model, Fixed model and random model and has regression analysisThe fifth chapter, the relevant recommendations and limitations. Firstly summarizing the whole paper, and putting forward some suggestions according to the results. Secondly pointing out the deficiencies of this paper and the direction of future efforts.Through analyzing and researching, we naturally come to the conclusion as following.(1) The listed Corporation’s performance, which is invested by institutional investors was significantly higher than that of no institutional investor’s shareholding (2) The relationship between Institutional investors and the company’s future performance showed a positive correlation and institutional investors can drive the company’s future performance increase fleetly.(3) The relationship between checks and balances in the corporation (expressed by the ratio of the Proportion in the equity structure of corporation of Institutional investors and the largest shareholder) showed a positive correlation.The innovation of this article:(1) Sample data. On the one hand the text choose1430stocks from the main board Market to be the foundation of our research; on the other hand, the author prize consistency of the panel data.(2) New ways in the empirical test, which is the panel data model. In this way, we could reduce the collinearity among economic variables and improve the effectiveness of regression, and contribute to setting up more accurate and rational model.