Research On The Impact Of Institutional Investor Shareholding On Corporate Performance:A Mediating Effect Based On R&D Investment

Since the beginning of this century,with the vigorous development of China's economy,more and more institutional investors have actively participated in the capital market.They have played an increasingly larger role and have become important in the invested enterprises.Institutional investors rely on their strong capital and professional knowledge to play a reasonable and effective governance role for the invested companies,reduce agency costs and enhance corporate performance.After the 18 th Party Congress of China,the investment in R&D of Chinese enterprises has increased significantly,and the rate of conversion of innovation results into productivity has accelerated,which has promoted China's economic growth and enterprise development.This paper constructs R&D investment as an intermediary variable between institutional investors and corporate performance.We use 2014-2016 listed company data to explain the mechanism of institutional investors' influence on the performance of the invested company.We find that increased institutional investors and pressureresilient institutional investors can effectively increase R&D investment and performance of invested companies.R&D investment has a partial mediating effect between institutional investors and corporate performance.However,the intermediary effect of institutional investors is not significant in pressure sensitive.Further research found that the intermediary effect of R&D investment is also not significant in stateowned enterprises and areas with low degree of marketization.This article believes that the development of diversified institutional investors,especially pressure-resilient institutional investors,will help improve corporate performance.Companies must strengthen their own management,actively introduce innovative talents and technologies,increase investment in R&D,and create new economic growth points.In addition,the government should reduce administrative intervention,relax restrictions on institutional investors entering the market,and eliminate barriers for institutional investors to participate in corporate governance.