The Research Of The Influence Of Institutional Investors On Corporate Performance

Since the QFII were allowed to enter the Chinese stock market,institutional investors were gradually diversified development.Scholars have been exploring the institutional investors more and more deeply,and the heterogeneity of institutional investors has become a hot topic.Because of the long research and development cycle in strategic emerging industries,and often faced with a shortage of funds,therefore the two kinds of agency problems in strategic emerging listed companies will be more serious.Whether institutional investors can effectively solve the problem,so as to improve the performance of enterprises is worth discussing.Based on principal agent theory,this paper use the data of the strategic emerging industries listed companies of china between 2009-2015 as the research object,investigating the relationship between institutional investor ownership and firm performance by using multiple regression model.According to whether there is a potential business relationship between institutional investors and the invested companies,we classified institutional investors into "pressure sensitive" and "pressure resisted" institutional investors,to explore the effect of different types of institutional investors on corporate performance in strategic emerging industries.Then according to the nature of the enterprise property rights and the size of the enterprise,we also divided enterprise into state-owned and non-state-owned,large-scale and small-scale to conduct empirical tests.The empirical result shows that the higher the institutional investors absolute shareholding,the better corporate performance.There is a significant positive correlation between the institutional investor shareholding balance degree and the company performance.We also find that pressure resistant institutional investors are positively related to firm performance,while pressure sensitive institutional investors play the role of "collusion".Further more that the positive effects of overall institutional investor ownership and pressure resistant institutional investors ownership on corporate performance are more significant in state-owned enterprises and large enterprises,and only in the larger companies and the non-state-owned holding companies,pressure sensitive institutional investors will have a negative impact on the company's performance.Finally,we use the two stage OLS to solve the endogeneity of institutional ownership and corporate performance,and the results are consistent with the above.From the perspective of industry characteristics,this paper study the influence of institutional investors on corporate performance.It provides empirical evidence for the financial support for the development of strategic emerging industries,and has theoretical significance to optimize the structure of institutional investors.