Research On Corporate Governance Effect Of Institutional Investors

No innovation,no development,innovation is the main driving force that the times expands,innovation is an important way to enhance the long-term competitiveness of enterprises.R&D investment is the basis of enterprise's technological innovation ability,the Chinese government in recent years has been strengthening the degree of attention to innovation,especially in 2015,the government put forward the new slogan of "mass entrepreneurship and innovation",encourage enterprises to increase investment in R&D.Although we have achieved certain results,but compared with western developed countries,we still exist obvious lack of innovation investment..So,how to identify and inhibit the R&D spending manipulation behaviors has become the focus of investors,regulators and other stakeholders concerned.It is pointed out that institutional investors play an important role in corporate governance as an external governance mechanism.In fact,since China's Securities Regulatory Commission in 2000 proposed the slogan" Cultivating and developing institutional investors in an unconventional and creative way ",the scale of China's institutional investors have a rapid growth,as of December 31,2015,China's institutional investors holding reached 35.45 trillion,accounting for 7.82%of the public shares.Institutional investors are playing a more and more important role in the capital market,becoming one kind of assignable and professional investors.In recent years,more and more researches have been made on the influence of institutional investors on the stock price and the corporate governance of listed companies.Based on the above background,after summarizing a large number of previous literatures,we used all china companies listed on the stock exchanges during 2009-2015,from the perspective of empirical testing,to find whether the institutional investors can efficiently constrain the behavior of managers' lack of innovation investment.Taking into account the heterogeneity of institutional investors and the impact of the external institutional environment,we further classify institutional investors,and introduce institutional environment as regulatory variables.We use the R&D model to estimate the lack of R&D spending,and two indicators of the existence of institutional investors and the proportion of institutional investors holding as independent variables,controlling the firm's financial characteristics and corporate governance features to conduct empirical test,drawing the following conclusions:(1)Compared to no institutional investors of listed companies,institutional investors corporate have less reduction of R&D spending.With the increase of the proportion of institutional investors,the reduction of R&D spending will decrease,indicating that institutional investors can play a supervisory role effectively,and restrain the behavior of managers' lack of innovation investment.(2)According to the characteristics of institutional investors,the governance effects of different institutional investors are different.Pressure resistance institutional investors can restrain the behavior of managers' lack of innovation investment compared with pressure sensitive institutional investors,stable institutional investors can restrain the behavior of managers' lack of innovation investment compared with trading institutional investors.(3)From the perspective of external influence factors of institutional investors,the effect of institutional investors in different institutional environment is different.Compared to state-owned enterprises,institutional investors of private enterprises can play a more important role.Similarly,the higher degree of marketization the enterprises have,more obvious effect institutional investors can play.Finally,according to the empirical results,we put forward some corresponding suggestions,hoping to improve institutional investors system and establish corporate governance mechanism to oversee the innovation behavior by managers.