Empirical Analysis And Mechanism Of The Impact Of Heterogeneous Institutional Investors’ Ownership On Holding Corporate Performance

The stock market is as a medium between enterprises and investors,and it has played an important role in promoting the development of market economy. Development of securities markets reflects the quality of the economic development in China. What’s more, securities markets can look like “the barometer”. A-share market is as a crucial channel for investors’ and domestic large corporates’ financing. To a certain extent, institutional investors are an crucial component for the healthy development of the A-share market. Today the development of China’s securities market is doldrums.In order to achieve stability in the development of financial market should not only rely on their own, but also with the supervision of institutional investors. As an important part in issues of corporate governance, the research of institutional investors is widespread concerned. As a crucial participant in the securities market, institutional investors play an important role in promoting the securities market more stable and more regulatory, what’s more, assisting in improving public companies’ market behavior. This study empirically analyzes when the different types of institutional investors share holdings of the company,what’s more, when shareholding ratio of listed companies is distinctive, whether institutional investors can influence the next year performance of the company or not.Select companies listed in Chinese A-shared which are shared ownership by institutional investors from 2008 to 2011 as sample data.The article builds linear regression model to study the number and the proportion level of institutional investors’ impact on holding corporate’s the following year performance, when heterogeneous institutional investors share ownership of the corporate.Ultimately concluded:(1)while holdings relative to the multi-agency, the impact of a single institutional ownership holding company performance next year is more significant;(2)while multi-agency holdings, the institutional investor shares the high percentage of corporate’s holdings can remarkably influence the following year performance of the company.Based on the conclusion, For companies, managers should keep communication with investors and deal with suggestions suggested by investors. For institutional investors, short-term and long-term shareholding shareholding combined holdings to strategic long-term business, you need to actively participate in corporate governance, so as to avoid damage to the interests.