The Study On The Economic Consequences Of Institutional Investors' Site Visits To Listed Companies In China

With the development of the securities market and the convenience of information exchange,the access to public information such as annual reports has become more and more easy.Site visit is the basis of follow-up work for institutional investors,such as understanding the company's operating conditions,analyzing the company's competitiveness and forecasting the future profitability of the company.This paper manually collects data about institutional investors' site visits from A shares of listed companies in Shenzhen Stock Exchange during 2012 to 2015,and inspects the frequency distribution,research content and reception staff,industry and regional distribution and other characteristics of the institutional investors' site visits.This paper also empirically testes the impact of institutional investors' site visits on institutional investors' investment decisions,the agency costs and the quality of information disclosure of listed companies.The results of the research show that the site visits conducted by institutional investors occurred most frequently in the second quarter.The content of institutional investors' site visits mainly covers the basic situation of the company,the company's development strategy,and development of industry.The board secretary is the chief receptionist for institutional investors.Institutional investors' site visits mainly distributes in Manufacturing,real estate,wholesale and retail.South China,southwest China and north China are the main areas distributing site visits inducting by institutional investors.In the regression analysis,the results show that the more times of institutional investors' site visits,the more they could significantly increase the institutional investors' shareholding ratio,and institutional investors'visit sites can significantly improve the quality of information disclosure of listed companies.However,institutional investors' visit sites reduce the agency costs of listed companies only in the high agency cost group.In the further analysis,this paper considers the different external governance environment of listed companies,and finds that under the low level of external governance,the role of institutional investors' visit site is more obvious.This study is helpful for institutional investors and listed companies to better understand the function of institutional investors' visit sites and to properly arrange these activities.