The Impact Of Insurance Institutional Investors On The Performance Of Listed Companies

Since China's economic and social development has entered the new normal,the state has attached great importance to the important role of the insurance industry in its overall strategic economic and social development.In August 2014,the State Council issued the "Ten new policies" on insurance industry,which opened a new chapter in accelerating the development of modern insurance industry.The insurance industry has become an important part of the overall layout of China's economic and social development.As of the end of 2017,premium income was 3.65 trillion yuan,total insurance assets was 16.74 trillion yuan,and insurance fund utilization balance was 14.92 trillion yuan,which has become the world's second largest insurance market.With the rapid development of China's insurance industry,the role of insurance institutional investors in the capital market has become increasingly important.With the investment advantages of their own funds,insurance companies participate in the stock market as institutional investors,which is conducive to a win-win situation between the stock market and the insurance industry.For the stock market,a large number of long-term and stable insurance funds can play a role as a mainstay,helping to ease market fluctuations and stabilize the market environment.For insurance institutional investors,their shareholdings can not only broaden their investment channels,increase investment returns and efficiency,and achieve diversified asset allocation.They can also inject large amounts of funds into listed companies to improve their corporate governance.However,in recent years,due to factors such as "asset shortage" and the decline in overall interest rates,and some insurance companies have taken some aggressive actions in the secondary market to disrupt the market stability.This process reveals that China's capital market still has many deficiencies,and there is still a large gap compared with developed markets in Europe and America;To some extent,it also reflects the active role of insurance companies as institutional investors in regulatory agencies and market-related personnel.insufficient.However,it also provides valuable experience for the sound development of the use of funds in the insurance industry in China.This article starts from the theoretical and empirical aspects,and from the perspective of corporate governance,explores the influence of the shareholdings of insurance institutional investors on the operating performance of listed companies.In terms of theory,we first describe the current situation of the development of insurance institutions in China and insurance regulatory authorities impose restrictions on insurance company equity investment.Next,for the theoretical foundations involved in this article,principal-agent theory and institutional investor shareholder activism theory are briefly described.Based on this theoretical basis,the motivations and approaches for insurance institutional investors to participate in corporate governance and the relationship between insurance institutional investors,corporate governance and business performance are further studied..In terms of empirical analysis,this article selects listed companies held by all A-share institutional investors in Shanghai and Shenzhen stock markets from 2013 to 2017 as a total sample,and according to whether or not insurance institutional investors hold stocks,and high-and low-insurance institutional investors hold Shares were divided into ABCD four groups for descriptive statistics;seven indicators were selected from the two major aspects of internal governance and external mechanisms of corporate governance;the company governance index CGI was established using principal component analysis;and the overall insurance institutional investor was analyzed using multiple regression.(Group B),between the corporate governance of the insurance institutional investor(Group C)with less than 5%of the shareholding and the insurance institutional investor(Group D)with more than 5%of the shareholding,the ratio between the shareholding and the company's operating performance relationship.The study found that the performance of holding shares of insurance institutional investors is higher than that of non-insurance institutional investors;the overall holding of insurance institutional investors is conducive to the improvement of corporate governance;the high proportion of shareholdings has a significant impact on corporate governance.There is no significant improvement in the proportion of shares held by the company;the overall holding of insurance institutional investors is conducive to the improvement of the company's performance level;the high proportion of shareholding has a significant impact on company performance,and the low proportion of shareholding has no significant effect on company performance;a high proportion of Insurance institutional investors improve their corporate performance by improving their corporate governance,and the insurance institutions' overall and low shareholding insurance institutions are not really involved in corporate governance.Finally,the paper concludes with theoretical and empirical conclusions and proposes relevant suggestions.