Research On The Influence Of Institutional Investors On Corporate Performance

Institutional investors have gradually become one of the most active participants in the capital market because they manage more funds,the corresponding managers are more professional,and the ways to obtain information are more diverse.By the end of 2017,the Social Security Fund alone had reached 2.2 trillion yuan.In the context of rapid development,the impact of institutional investors on the development of the real economy has gradually attracted the attention of the majority of scholars.As one of the important participants in the capital market,institutional investors play a very important role in the development of the real economy and the operation of the macro-economy.Institutional investors can not only meet the needs of a large number of funds in the process of enterprise management,in order to meet the huge demand for funds for innovation.On the other hand,the amount of funds held by institutional investors,the support of some industries,can also meet the national industrial planning,therefore,can play a certain guiding role in the capital market.For institutional investors how to affect the performance of enterprises,especially the innovation performance of enterprises in the reality of the urgent need to solve the problem.This paper focuses on how institutional investors affect the operating performance and innovation performance of enterprises.Use China Entrepreneurship Edition and small and medium-sized version of listed enterprises,and screen out manufacturing enterprises.The data from 2008 to 2017 are used to verify the hypotheses of the study.the results show that institutional investors can promote the business performance and innovation performance of enterprises,but only pressure-resistant institutional investors can play a role.Pressure-sensitive institutional investors have no impact on this.It can be further found that this impact is mainly through improving the level of executive compensation,and then affect the business performance and innovation performance.However,only in the case of equity checks and balances greater than l.and pressure-resistant institutions in private enterprises can enhance the role of executive compensation.