A Correlation Study Between Institutional Investor Shareholding And Corporate Performance

The study of the impact of institutional investors on corporate performance in China's capital market is of great significance to stabilize the capital market and promote the development of China's listed companies.The author based on the efficient market theory,principal-agent theory and stakeholder theory,from 2011 to 2015 all A shares of listed companies as samples,influence of institutional investors on corporate performance in China's capital market.Due to large holdings,when company performance is poor,the "vote by foot" high cost at the same time,institutional investors have the advantage of scale,more capacity and conditions for the development of company.So the institutional investors tend to participate in corporate governance,inhibit the self-interest behavior of management,which will improve the corporate governance level,reduce agency cost,enhance the value of the company.In turn,company performance will be better recognized by the market,more favored by institutional investors,attract more institutional investors.In the empirical study,firstly,the evaluation on the level of corporate governance of Nankai University.System,using principal component based on analysis by KMO test method for the synthesis of corporate governance index,a measure of the level of corporate governance;then,in use does not exist between the variables is obviously linear case,a panel regression model,the proportion of institutional investors holding different empirical test and the level of corporate governance and company analysis of the effect of agency cost,the proportion of institutional investors on Governance and agency cost;finally,according to the panel regression model,the level of corporate governance,test the relationship between agency cost and corporate performance of the two variables,the results are explained.The results showed that: there is a positive relationship between the ratio of institutional investors with the level of corporate governance has a negativerelationship between the company and the agency cost,the level of corporate governance to enhance the role of the performance of the company,the company agent The cost reduction effect on the company performance.The conclusion is that the institutional investor by improving corporate governance level,reduce agency cost,can improve the performance of the company,and a higher proportion of institutional investors holding,the effect is more obvious.At the same time,to enhance the performance of the company,the market performance is better,the institutional investors will get recognition and favor the proportion of institutional investors,the company will also be increased accordingly.Based on the research conclusion,put forward three proposals: first,improve the legal system,improve the proportion of institutional investors holding limit;second,comprehensive and coordinated development of institutional investors;third,actively guide institutional investors to participate in corporate governance.The innovation of this paper: first,regression analysis using panel data,to ensure data consistency and rigor,more persuasive;second,to the level of governance and agency cost as the intermediary,influence path between the study of the two,to a certain extent,to avoid the positive relationship between the "value choice" may.The limitations of the study: there is no classification of institutional investors,hope that the future research can explore a more scientific and comprehensive measurement method,the different types of institutional investors were studied.