The Impact Of Insurance Company’s Equity Investment On The Operating Performance Of Non-financial Listed Companies

Since the end of 2018,China Banking and Insurance Regulatory Commission has intensively introduced a series of favorable policies to broaden the channels for investment in insurance capital.Insurance companies have the unique advantages of long-term investment,the characteristics of debt management,and the long-term and stable characteristics of insurance capital,which determines that insurance funds are suitable to provide long-term and stable capital support for the development of real economy.At the same time,insurance companies gradually take advantage of their professional risk management technology to participate in the strategic decision-making and corporate governance of the invested companies.Therefore,it is necessary to further study the equity investment behavior of insurance companies.This paper uses the method of normative analysis and empirical analysis.The first part of this paper is the introduction.The second part introduces the theoretical basis and literature review.The third part analyzes the current situation of the application of insurance funds in our country.The fourth part analyzes the equity investment preference of insurance companies from three aspects:fundamental and financial factors,stock market performance factors and corporate governance factors.The fifth part empirically analyzes the impact of equity investment of insurance companies on the operating performance of listed companies.Taking A-share non-financial listed companies in China from 2006 to 2017 as a sample,adopting appropriate methods to deal with endogenous problems,the empirical test is carried out.The sixth part mainly summarizes the research conclusions,and from the aspects of the correct view of the positive role of insurance funds in the capital market,making full use of the existing insurance investment channels to effectively prevent risks,and implementing more comprehensive regulatory to make relevant recommendations.The main conclusions of this paper are as follows:first,on the whole,the equity investment preference of insurance companies in our country is chasing high security,low risk,strong profitability and high liquidity.This preference is consistent with the nature of capital source and the characteristics of business operation of insurance companies.It shows that insurance companies follow the idea of rational and mature value investment when making investment decisions.This conclusion provides a strong support for "insurance companies are high-quality institutional investors."Second,there is a positive correlation between the stock holding ratio of insurance companies and the ROE of non-financial listed companies,that is,the higher the ratio of equity holdings of insurance companies,the more obvious the improvement of the performance of listed companies,which can bring a marginal contribution of 0.147 to the improvement of performance.This conclusion not only provides empirical data support for"insurance funds participating in promoting the development of real economy",but also can further improve the theoretical research on the impact of equity investment on the performance of listed companies.The possible innovation point of this paper is that,firstly,the research angle is innovative.This paper researches whether the insurance company can help the enterprise to improve the performance,and how the insurance fund supports the real economy,from the perspective of the equity investment of the insurance company.Secondly,the research content is innovative.The equity investment behavior of institutional investors and the influence on the invested company have been a hot issue of the scholars’ attention at home and abroad.Moreover,for the preference of the equity investment of the insurance company,the research of the existing literature is not in-depth,and the research in this field can be expanded to a certain extent.