Research On The Influence Of Funds' Investment Style To The Company's Innovation

Considering the international experience, institutional investors gradually replace individual investors, and become the main subject of capital market. Statistics show that developed capital market like the United States and Europe, institutional investors holding of shares in proportion to the current market has been more than half. As the institutional investor's stake in the capital market is more and more big, the influence on the investment of the corporate governance of listed companies is becoming more and more important.Generally speaking, the institutional investors use its powerful information collection and processing ability, professional investment ability involved in day-to-day operation and management activities, thus to improve the intrinsic value of the company in the long run. And institutional investors share the benefits of the value of the company growth, to realize the steady development of its own. And it is well known that the core elements of the value of the company growth are its ability to innovate. As a result, institutional investors want to share the company's long-term value, increasing returns through corporate governance is certain to force management to innovate.Based on the above background, this paper try to study from the perspective of the empirical relation between institutional investors and companies to innovate, to enrich the theory of relationship between institutional investors and corporate innovation research, and for the country when making relevant policies to provide factual basis, in order to improve our country enterprise overall innovation render contribution.The main content of this paper is as follows:Chapter 1:introduction. Firstly, the introduction part discusses the research background from four levels, and the research significance is discussed from two aspects of theory and reality; then it described research methods and research content in detail; finally research and innovation points are put forward.Chapter 2:literature review. Literature review part mainly from three aspects: the first is the study of institutional investors participating in corporate governance review, followed by the review on the study of corporation innovation behavior of institutional investors, the last is about the properties of the different institutional investment review on the study of corporation innovation behavior.Chapter 3:the theoretical analysis. Theoretical analysis part, first of all, the concept of variables in the study of this article are defined, and then on the principal-agent theory, the analysis of the effect of institutional investors on the company's innovation mechanism and the influence path, according to the game relationship between institutional investors and corporate innovation, build the incomplete information static game model with complete information dynamic game model, and analyzed theoretically the relationship between institutional investors and corporate innovation.Chapter 4:empirical analysis. Empirical analyses are based on theory analyses and two core variables for institutional investors and companies are quantitatively processed. First of all, this variable for institutional investors, based on the different investment styles, the institutional investors into two categories for long-term investors and short-term speculators; And investment style is reflected in the variable, in which the higher turnover rate, the more frequently the trading, investment style is more inclined to short-term speculative; The lower the turnover rate is lower, the trading frequency, investment style is more inclined to long-term investment; For companies to innovate this variable, based on the number of patents and patent quality quantitative treatment was conducted on the two aspects of innovation to the company. And then, on the basis of variable processing, put forward in this paper, the core of the hypothesis that turnover rate and the number of company's patents (or quality) are negatively correlated. Finally, this paper constructs the turnover rate and the company patents (or patent quality) of multivariate regression model, and carried on the detailed empirical analysis. With the analysis the correlation between variables, there is no multicollinearity between variables; From the point of multiple regression results, turnover rate and company patents (or patent quality) exists significant negative correlation relationship between; From the empirical results of patent classification, turnover rate for various types of patents are obvious negative relationship; From an empirical analysis of the impact mechanism, with the company's technical development in between there are obvious negative relationship. From the point of robustness test, the empirical conclusion of this paper is scientific and reliable.Chapter 5:conclusion and suggestion. Based on theoretical and empirical points, puts forward the main conclusion of this article, namely:first, the securities investment fund turnover rate and company are negatively related patents and patent quality; Second, securities investment funds to the company in the influence degree of the patent number is lower than the degree of impact on the quality of the patent, when compared to the company the number of patents, patent quality for securities investment fund is more sensitive to changes in the rate of turnover; Third, securities investment fund turnover rate on the quality of the company's patents and patent mechanism mainly through affecting the company's innovation input, research and development input, output, in turn, affect the company's innovation activities-patent; Finally, it analyses the deficiency of this article and prospect, and puts forward relevant policy.