Research On The Impact Of Legal Protection Of Small And Medium Investors On Corporate Value

China has a large number of small and medium investors,relatively high proportion,and the participation of small and medium investors in the capital market is also high.However due to the short development time,relevant laws and regulations in China securities market system is not perfect,related market operation mechanism is not mature enough,and in comparison,the medium and small investors access to information analysis ability is poorer,risk prevention and control ability is weak,some or to manipulate the stock price or financial information to fiction or for related party transactions such as way to encroach on the interests of small and medium-sized investors case occurred frequently,it reflects the current our country small and medium-sized investors legal protection mechanism of incomplete and thus in the new era under the new situation,for small and medium-sized investors legal protection and explore the relationship between the enterprise value has the very strong practical significance.Throughout the domestic and foreign research literature,there have been many researches on the influence mechanism and relevant conclusions of legal protection of small and medium-sized investors on enterprise value.Foreign scholars mainly study the difference of enterprise value between different countries due to different laws and regulations.Domestic scholars mainly focus on the relationship between the two companies from the perspective of internal governance mechanism.However,the literature on the impact of legal protection of small and medium-sized investors on enterprise value is relatively scarce at present.In view of this,this article first used by 16 related projects and reference of the development of the China securities regulatory commission in the medium and small investors rights protection education handbook "normative documents directory index" and related policies and regulations the index,small and medium-sized investors legal protection on the basis of that,1995 years ago in Shanghai and shenzhen a-share listed companies of 251 companies as research samples,using fixed effects regression model,the empirical analysis between 1993 and 2016,small and medium-sized investors legal protection effects on corporate value.The transmission mechanism of the influence of legal protection on the value of small and medium investors is studied.The results show that the legal protection level of small and medium-sized investors in China is improving,but there is still a large gap compared with the developed countries.The legal protection of small and medium investors has a significant positive impact on the enterprise value,namely,the enterprise value of listed companies increases with the strengthening of the legal protection degree of small and medium-sized investors.At the same time,through the research of transmission mechanism,it is found that the legal protection of small and medium-sized investors first influences the ownership structure,and then the change of ownership structure further leads to the increase of enterprise value.It can be seen that the government should strengthen the legal protection of small and medium-sized investors,which is very important for the sustainable and healthy development of listed companies.In small and medium-sized investors legal protection from the relevant laws and regulations,and strengthen its enforcement aspect,the government may formulate is operational and strong timeliness,specifically for small and medium investor protection laws and regulations,on the basis of the established specifically enforce the terms of law enforcement.