A Research On The Influence Of Institutional Investors' Shareholding And Heterogeneity On Enterprise Innovation

Since the introduction of the "Thirteenth Five-Year Plan",China's economic market has set off a wave of "mass entrepreneurship and innovation",especially high-tech industries.The government has given great support to its economic policies.Enterprise innovation can be reflected to a certain extent through R&D investment intensity and patent output.Once its R&D project is effective,it will bring long-term economic benefits to the company and enhance its market competitiveness.In the late 1990s,institutional investors were introduced from the Western capital market into China's market economy system,but the development was relatively slow.It was once regarded as a "flavoring agent" in the capital market.In 2004,the State Council proposed in the "Opinions on Promoting the Reform,Opening,and Stable Development of the Capital Market"that the institutional investors should be vigorously developed,and then the development of institutional investors entered a stage of rapid development.The Qualified Foreign Institutional Investor(QFII)system was introduced into the Chinese capital market,and insurance funds also began to invest in the stock market.As the market share of institutional investors gradually increased,the types were also enriched.Institutional investors have the characteristics of strong financial strength(large shareholding ratio),keen sense of capital market,extensive information channels,rich investment experience,specialization of fund management,and standardized investment behavior.Therefore,compared with scattered individual investors,Institutional investors are more able to influence the investment,innovation and business decisions of listed companies.In recent years,domestic and foreign scholars have focused on the research of institutional investors and corporate governance,the relationship between corporate economic benefits,and few scholars have studied the relationship between institutional investors and corporate innovation.Under the current institutional background of separation of powers,equity reform,and encouragement of innovative capital markets,it is of theoretical and practical value to study the innovative effects of institutional investors' shareholdings and the impact of institutional investor heterogeneity on corporate innovation..This paper studies the relationship between institutional investors' shareholdings and corporate innovation from the perspective of institutional investors' shareholding and the heterogeneity of institutional investors'holdings,and adds regulatory variables such as product market competition and property rights,which enriches corporate innovation.The research content of influencing factors broadens the research scope of institutional governance of institutional investors,with a view to providing some inspirations for the introduction and supervision of institutional investors in China.This article is divided into five chapters.The first chapter introduces the significance of this paper in the current context.By combing the relevant literature on the relationship between institutional investors and enterprise innovation,this paper puts forward the research ideas,research methods and innovation points of this paper.The second chapter defines the concept and the theoretical basis.Firstly,it defines the related concepts of institutional investors and their heterogeneity,enterprise innovation,and then related to technological innovation theory,institutional shareholder activism theory,institutional shareholder negativeism theory,principal-agent theory,etc.The theory is elaborated as the theoretical basis of this study.The third chapter is theoretical analysis and research hypothesis.Firstly,it describes the status quo of institutional investors' shareholding and enterprise innovation in China.Then it discusses the mechanism of institutional investors'shareholding and heterogeneity on enterprise innovation,and proposes on this basis.The research hypothesis of this paper.The fourth chapter is the empirical test.This paper selects 2821 observations of the GEM listed companies in 2011-2017 as the research samples,and conducts empirical tests through descriptive statistics,correlation analysis and regression analysis.The fifth chapter is the research conclusions and prospects.The research finds that:(1)institutional investors'shareholding has a significant role in promoting the improvement of corporate innovation level,that is,institutional investors' shareholdings are positively related to corporate innovation.(2)Compared with pressure-sensitive institutional investors,the positive correlation between shareholdings of pressure-resisting institutional investors and corporate innovation is more significant.(3)Product market competition has a positive adjustment effect between institutional investors' shareholding and corporate innovation,that is,the influence of institutional investors' shareholding on enterprise innovation will increase with the increase of product market competition.(4)The innovative effect of institutional investors' holdings is more prominent for non-state-owned enterprises than for state-owned enterprises.Finally,based on the above research results,the corresponding policy recommendations are proposed.The main contributions of this paper are as follows:(1)Through the research on the relationship between institutional investors' shareholdings and corporate innovation in listed companies on GEM,it not only broadens the research perspective of corporate governance of institutional investors,but also enriches the research content of the factors affecting corporate innovation.(2)According to the policy recommendations put forward by the research conclusions,this paper has certain reference value for perfecting the structure of institutional investors,strengthening market competition,promoting the innovation of state-owned holding enterprises,and improving the innovation level and economic benefits of listed companies.