Research On The Correlation Between Institutional Investor Heterogeneity And Earnings Quality Of Listed Companies

The total value of A stock market reached 56.62 trillion yuan at the end of 2017 in China,and more than 10% of the shares were held by financial institutional investors.This shows that China has made remarkable achievements in institutional investors in the past years.With the absolute increase in the number of institutional investors,more and more researchers have begun to focus on how institutional investors really play a positive role in the capital market.As the business result of the enterprise,the earnings is the goal pursued by the enterprise and the focus of investors.More and more researchers have gathered their eyesight to whether the institutional investor's shareholding has improved the earnings quality of the invested company,making institutional investors The research on the correlation between shareholding and earnings quality has become an important direction for both the improvement of financial information and the development of institutional investors.Studies have shown that the crude research that regards institutional investors as a whole can no longer meet the needs of institutional investors' shareholding analysis,and it is necessary to combine the research objects to make heterogeneous distinctions among institutional investors.Based on the heterogeneity of institutional investors,this paper divides institutional investors into independent and non-independent institutional investors according to independence,and on the other hand divides institutional investors into stable and transactional types according to the stability of shareholding.At the same time,the earnings quality is measured from the two dimensions of real reliability and decision correlation of earnings information.The theoretical analysis explores the relationship between the heterogeneity of institutional investors and the earnings quality of listed companies in multiple dimensions and conducts empirical research design and analysis,and attempts to propose policies.Through theoretical analysis,this paper believes that independent institutional investors can improve earnings quality and especially act on the governance of listed companies directly and improve the true reliability of earnings.Stable institutional investors rely on their market functions such as signal transmission to exert external governance to improve earnings information.In the empirical research,through the earnings and market data of listed companies in China in 2017,the conclusion of this paper is that the independent institutional investors in the current market can not effectively improve the earnings management of listed companies,on the other words the true reliability of earnings information.Stability institutional investors can significantly improve the earnings reflection coefficient,making the earnings information have higher market effectiveness,but at the same time its space for improvement is still large.It is suggested that the development of institutional investors requires more policy support and guidance,and the research on the heterogeneity of institutional investors and the quality of earnings in the future can open the perspective to further develop.