An Empirical Study On Relationship Between Institutional Investors' Stockholding And Corporate Social Responsibility

In recent years, the continuously enterprise malignant event has brought t massive loss to benefit counterparts such as shareholder, supplier, government, staff, etc. The social sectors appeal to the enterprise have to fulfill more social responsibility, the theorists has also launched thorough research and discussion on the corporate society responsibility, the country also one after another promulgates laws and regulations to request enterprise to undertake more social responsibility, a up-down corporate society responsibility movement is already irresistible. Institution investor has become important investor strength of the capital market in the policy background that our country is vigorously developing institution investor. Comparing with the blindness of individual investor, institution investor is more specialized, their financial strength is stronger and the enthusiasm in participating company governance is higher when they are formulating investment strategy. Therefore, it has important theory and practical significance to study the corporate society responsibility's influence to the institution investor's stockholding strategy and the institution investor's governance effect on the corporate society responsibility in the process of participating company governance in the background of corporate society responsibility movement boom and vigorously development of institution investor.Firstly, this article reviews and combs the related literature to make clear the subject and direction of research and has a brief introduction of the relevant theoretical basis. Then, on above foundation, the article focuses on 841 a-share companies in Shanghai and Shenzhen from 2009 to 2013 year that institution investors hold stocks, and has carried on the study design about the supposition, research variable and model, do a empirical research on the relations between institution investor holding stocks and corporate social responsibility through methods like factor analysis, correlation analysis and regression analysis, etc, and finally draw the conclusions and prospects from analyzing the empirical results.Through theoretical and empirical analysis, the article comes to conclusions as follows:(1) This article constructs a corporate social responsibility evaluation system covering six main benefit counterparts including shareholder, supplier, government, consumer, staff and bondholder for a total of 21 indexes, and comprehensively assess the social responsibility of public companies in our country using factor analysis. The conclusion of the study shows that corporate social responsibility in our country shows an upward trend in recent years; The industry corporate social responsibility performance extractive obviously is better than other professions, and that of farming, forestry, animal husbandry, fishery is worst; State-owned enterprises do a better job of corporate social responsibility performance and stability aspect than non-state-owned enterprises.(2)Empirical analysis of corporate social responsibility's influence to institution investor stockholding indicates that corporate social responsibility has significant impact on the overall investor stockholding-that is, institution investor is in favor of these public companies with better corporate social responsibility performance in investment decision-making process, and this kind of influence had certain delayed effect. In addition, different types of institution investor show some differences in investment strategy to corporate social responsibility, and only fund display obvious investment favor to better behaved companies.(3)The study on the governance effect of the overall and three kind of institution investor in our country to corporate social responsibility express that the overall institution investor stockholding has a certain but extremely limited improve effect. Besides, there're particular differences between the governance effect of different types of institution investor to corporate social responsibility, and only fund show definite but extremely limited improve effect.(4)The overall institution investor stockholding proportion is not high at present stage in our country, which is ascribed to that institution investor in China is on the rising developing phase. Moreover, fund stockholding proportion in China's security market is obviously higher than other institution investor, which offers another perspective to reveal that fund differs from other institution investor in investment favor and governance effect to corporate social responsibility.