The Empirical Research Of The Impact Of Institutional Investor Heterogeneity On Top Executives Turnover

With the vigorous development of the institutional investors in Chinese capital market and the concern of the rapid ascension, institutional investors in corporate governance play a role in growing attention, owing to the introduction of more and more formal professional institutions, whether the effective running of its supervisory power it will be depend on producing significant impact for the company.Top executives turnover, especially involuntary turnover of the top executives, as one of the major events in company, can strike company’s performance and administrative situation in some way.Meanwhile the decision can also reflect the attitude of the company managers, it is able to measure as regulators new power of the enthusiasm of institutional investors in corporate governance. However different types of institutional investors with differences in investment preferences, are not willing to or able to play its regulatory part, thus what institutional investors exactly plays a role in corporate governance, what kind of effect, and what relations with listed companies? This article will analyze the questions above.This article is from the change of the top manager, based on the 2011-2013 between Shanghai and Shenzhen a-share listed companies with the situation of involuntary turnover of the top executives as the sample, the institutional investors are divided into pressure sensitive type and pressure resistance, which is based on the real impact of further empirical study on institutional investors participating in corporate governance for manager change in this company. Research show that institutions investors own holdings proportions higher, it is due to the performance falling down and leading to of executives non-voluntary change of possibilities more smaller. This show that institutions investors usually do not play an effective and positive role in corporate governance. The impact of pressure sensitive institutional investors was not significant. Pressure resistance type with the high holding proportions can actively participating in corporate governance.Above all, this article think that Chinese institutional investors should improve their positivity and supervising power in corporate governance further.