Empirical Study On The Ownership Of Institutional Investors And The Cost Of Equity Financing Of Listed Companies In China

With the gradual opening and perfection of our capital market,the structure of investors in the market has undergone tremendous changes.Before 2000,the investors in our country's capital markets were mainly individual investors.Since 2000,a large number of institutional investors have started to enter the market.At present,they have gradually become the major players in the market.Institutional investors to enter the capital market,not only to inject more rational new funds to the market,help to enhance the stability of the market;the same time,from the corporate financial level,institutional investors through holding the shares of listed companies,participating in listed companies Governance,can enhance the performance of listed companies,and promote the long-term development of listed companies.Therefore,the research on institutional investors has become a hot spot both in the macro and micro fields.In this paper,from the perspective of equity financing cost,we use the combination of theoretical analysis and empirical research to study the governance effect of institutional investors holding shares on listed companies,hoping to provide reference for the development of institutional investors in our country.In the part of theoretical analysis,through combing the literature about the institutional investors' participation in corporate governance,we think that institutional investors can reduce the equity financing cost of listed companies by participating in corporate governance.Therefore,we make corresponding assumptions.In the part of empirical analysis,this paper selects the listed companies of Shanghai and Shenzhen A-shares from 2013 to 2016 as the sample data,estimates the equity financing cost of listed companies by using CAPM model,and then constructs the multiple linear regression model to study the institutional investors' The impact of the company's equity financing costs,and the impact of different types of institutional investors on the equity financing costs of listed companies.From the research results,the proportion of institutional investors holding shares in China is negatively correlated with the level of equity financing of listed companies,that is to say,institutional investors participate in the governance of listed companies,effectively improving the information disclosure environment of listed companies and reducing the number of listed companies Equity financing costs.Second,the impact of different types of institutional investors on the equity financing costs of listed companies is different.Among them,independent institutional investors hold more significant effect on reducing the cost of equity financing for listed companies,while the effect of non-independent institutional investors holding shares on lowering the equity financing cost of listed companies is not significant.