Research On The Relationship Between Found Holdings And Corporate Performance

Since the establishment of the China stock exchange,the listed company is increasing year by year.Corporate governance of listing Corporation has become a major issue that needs to be studied.Because of information asymmetry.The conflict of interest between shareholders and managers,majority shareholder and minority shareholder become more serious.The running efficiency of the company is lower,and the problem of corporate governance is needed to be resolved.With the development of China's fund industry,fund of financial market share is bigger,as an important external investors of the listed companies,the funds began to change identity from the previous "vote with their feet" negative shareholder to actively participating in corporate governance,in order to increase the performance of listed companies,and pursuit the maximum benefits of their own portfolio.Based on the perspective of corporate governance,this paper studies the influence of fund holdings on corporate performance.The research of this paper has certain theoretical significance and practical value to the development of China's fund and how to improve the governance structure of listing Corporation.The research idea of this paper:firstly review the literature on the impact of the fund holdings on the performance of the company at home and abroad.Then through the fund ownership theory,company governance theory analysis and the performance of the company concept definition,we summarize the motivation and ways to participate in corporate governance in order to enhance the performance of the listing Corporation.In the empirical research design,we use the structural equation model(SEM)to build a model of fund holdings and corporate performance.Based on the listed company data of 2012-2014 in Shenzhen Stock Exchange,the empirical results show that fund holdingds can improve corporate governance of listed companies,through the improvement of corporate governance to improve the performance of the listing Corporation.In short,the fund holdings can be involved in corporate governance to improve the level of corporate performance.The factors that can significantly affect the performance of the company are fund holdings,equity structure and information disclosure.By observing the total effect and direct effect of SEM empirical output,we find that fund holdings is mainly through the equity institutions and information disclosure to improve corporate governance and thus improve the performance of the company.Finally,according to the empirical results,the following suggestions are put forward in order to further improve the performance of the fund to improve the performance of the company:improve the way of fund participation in corporate governance,improve the quality of listing Corporation,to develop the fund,to protect the fund to participate in corporate governance.This consists of five parts,the first part is the introduction,we use the development of the fund and the importance of the listing Corporation governance issues as the research background,from the perspective of corporate governance,this paper studies the significance of the relationship between fund shareholding and corporate performance.Then,this paper introduces the ideas and methods of the research of the fund shareholding and corporate performance,and builds the framework of this paper.Finally,it is the innovation of this paper and the place that is needed to be improved.The second part reviews the relevant literature on the impact of institutional investors on the performance of listing Corporation and the impact of fund holdings on the performance of listing Corporation by reviewing the domestic and foreign institutional investors,point out the shortcomings of the existing research.The third part is the theoretical analysis of the influence of the fund Shareholding on corporate performance.After the concept of corporate governance and corporate performance,and the connotation of corporate governance,put forward the theory of the fund shareholding participation in corporate governance,principal agent theory,and the influence of the fund Shareholding on corporate governance.The fourth part is the research design.Firstly,the structural equation model is introduced,and then the index system of the influence of the fund holdings on the performance of the company is established,which is based on the perspective of corporate governance,constructe the corresponding structural equation model.We select the sample data from 2012 to 2014,the Shenzhen Stock Exchange listing Corporation to do an empirical analysis.We find that output results support of the three hypotheses in this paper.The fifth part is the conclusion of this paper,we get suggestions of how to improve the performance of the company.The innovation of this paper is that we study how to improve the performance of the company by influencing the corporate governance.Secondly,the research object of this paper is the segmentation of the institutional investors,is not a general study of the impact of institutional investors on corporate performance,from the two aspects of the fund shareholding ratio and the degree of balance of the fund holdings to measure the impact of the fund's holdings on the company's performance.Through theoretical analysis and empirical research,we verify these assumptions:(1)Fund holdings can improve the corporate governance structure.(2)The higher the proportion of fund holdings,the better the performance of the listing Corporation held by the fund.(3)The higher the degree of checks and balances,the corporate performance is better.