Empirical Research On The Effects Of Qualified Foreign Institution Investors On The Performance Of Listed Companies

With the development of economic globalization,the free flow of capital in the international market has become an inevitable choice.A large number of emerging economies,including China,have the characteristics of imperfect capital market system.Thus,the establishment of a qualified foreign institutional investor(QFII)system has become the choice of many emerging economies.China's QFII system began in 2002.After more than 10 years of development,it has become an important force in the game of capital market.The QFII system has helped China gradually introduce foreign capital and open capital markets.QFII is a crucial transitional arrangement in the absence of fully convertible and capital projects in our country.Under this background,what kind of relationship between the QFII shareholding and the performance of listed companies,whether this relationship will significantly change with some factors and show some differences.However,the present studies of the QFII shareholding impact on the performance of listed companies does not have a consistent conclusion,so the study of relationship between the QFII shareholding and the listed company performance is very necessary,this article will through the combination of theory and empirical research method to analyze the above issues.First of all,on the basis of existing research,this paper reviews related literature about the institutional investors and QFII impact on the governance of listed companies and the performance of listed companies,then expounds established theoretical basis and development present situation of QFII system,then analyses the motive and the way how QFII improved corporate performance,to show that QFII can through participating in corporate governance to bring a certain degree of positive impact on performance of listed companies.According to related research results of institutional investors,choose three different variables earnings per share(EPS),return on total assets(ROA)and return on common stockholders' equity(ROE)which can measure performance of listed companies as explained variables.Choose the QFII shareholding proportion and the QFII shareholding balance degree as the explained variable.Use multiple regression models to research the relationship between them.In order to eliminate the influence of share division,this article use the QFII shareholding quarterly data from 2008 to 2017 as samples,the empirical results show that there is a positive correlation relationship between the QFII shareholdingproportion,the QFII shareholding balance degree and the performance of listed companies.When the market is generally in a bull market,this positive correlation is more significant than the bear market.In large cap listed companies,this kind of positive correlation is significantly larger than the small and medium sized listed companies.In the state owned listed companies,this kind of positive correlation is more significant than the non state owned listed companies.