Research On The Influence Of Institutional Investors On The Performance Of Private Listed Companies

For the past few years,institutional investors have been developing steadily and becoming the backbone of the global capital market,they help to improve corporate governance,protect the interests of investors,promote the healthy development of companies and stabilize the market.Both the scale and quality of institutional investors have improved greatly since CSRC proposed the idea of "extraordinary development of institutional investors" in 2001,in recent years,it maintained an "institutions into,retail investors back" strong tendency,thus it can be seen that the influence of institutional investors upon the companies have became wider and wider.The current academic studies are most direct analysis of the relationship between institutional investors and corporate performance,without considering the inherent mechanism of the influence of institutional investors upon the corporate performance,it is not clear that the results from "value choice" or "value creation".Private listed companies as a key component of the national economy,they are very important to adjust the industrial structure and promote economic transformation,but they have seriously principal-agent problems of the " internal control" and "dominance",resulting in attaching great importance to the business,looking down on management and damaging the legitimate rights and interests of minority shareholders,so private listed companies need institutional investors' help to improve corporate governance problems more than other companies and propose for the companies' long-term development.Therefore,in the current situation,do the institutional investors affect corporate performance? whether by reducing agency costs and improve corporate performance worthy of our consideration.Firstly,this paper has combed the concepts of institutional investor,agency cost and corporate performance,and the mutual influence between each other has carried on the literature review.Secondly,on the basis of the principal-agent theory and stakeholder theory,this paper has analyzed the influence of institutional investors upon the private listed company performance and the mesomeric effect of the agency cost,it also put forward some assumptions.In the part of the positive analysis,we chose the data between 2012 and 2015 of Shanghai and Shenzhen A-share market of Chinese private listed firms in China as research samples by using of the mediation effect test model and the statistical software SPSS19.0 for empirical analysis,and the following conclusions were drawn:(1)Institutional investors have a positive impact on private listed company performance.(2)The agency costs have a negative impact on private listed company performance.(3)Institutional investors can alleviate the principal-agent problems and reduce agency cost of the private listed companies.(4)Agency costs play a mediation role in the influence of institutional investors upon the private listed company performance.Finally,according to the empirical results,from the angle of the external environment and internal management,this paper has put forward some proposals about the further development of institutional investors and the growth of private listed company,some limitations and prospects of the study were elaborated in the end.