Research In The Influence Of Institutional Investors Holdings On The Company's Growth

With the continuous development and improvement of China's securities market,greatly advocated by our national policy,institutional investors play more important roles on listed company.Compared with individual investors,institutional investors often hold more shares of listed companies,and hope to obtain long-term investment returns.Therefore,they will actively participate in the governance of listed companies,supervise the business activities of their holding companies,and supervise and urge managers to better manage their companies,thus prompting the company to keep a long-term and healthy development.This paper takes the listing Corporation as the research object to study the influence of institutional investors on the growth of the company.First of all,the domestic and foreign literature on the impact of institutional investors on the growth of the company has been reviewed in a more comprehensive way;defines such concepts as GEM(growth enterprise market),the GEM Listed Corporations,institutional investors,companies' growth,and determines the theoretical basis of this research,which is property rights theory,corporate governance theory,and the theory of the efficiency of capital allocation;based on the above,Analyzes the present situation of the institutional investors holding and the gem listed company growth;putting the data disclosed by GEM Listed Corporations from 2012 to 2014 as a sample,the empirical research applies descriptive statistical analysis,correlation analysis and regression analysis to make the empirical research on and verify the impact of the share holding of institutional investors of GEM Listed Corporations upon companies' growth.Empirical research results are drawn as follows:(1)the effect of the shareholding ratio of institutional investors upon companies' growth is positive;(2)there exists significant positive correlation between institutional investors' shareholding balance degree and companies' growth;(3)Relative to the low rate institutional investors,institutional investors who holding high rate the gem listed companies have a larger influence on firm growth.Finally,according to the research results relative suggestions were put forward: first,through improving their overall quality,the GEM listed companies can attract institutional investors to invest their stocks;second,GEM Listing Corporation shouldimprove the company's internal governance mechanism;third,Institutional investors Should improve their professional Quality and regulatory capacity;four,establishing more strict information disclosure system and the supervision mechanism.