A Study On The Influence Of Insurance Companies As Shareholders On The Recognition Of Listed Companies In The Capital Market

On April 1,2018,the latest measures for the Management of the use of Insurance funds issued by the CIRC began to be implemented,which clearly requires insurance companies to set up insurance asset management departments and use their own funds to participate in listed companies or make equity investment or even shareholding equity investment in other enterprises.At the same time,CIRC insurance companies carry out hierarchical supervision on general stock investments,major equity investments and acquisitions of listed companies to ensure the proper use of insurance funds.In addition,in recent years,the State Council has repeatedly encouraged insurance companies to use their long-term stable funds to alleviate the financing difficult ies and expensive financing problems of small and medium-sized enterprises and to use their own risk management experience to help some enterprises improve their awareness and level of risk control.At the same time,insurance companies are encouraged to provide long-term funds to strategic emerging industries,small and micro enterprises and science an d technology enterprises to help them solve the problem of capital shortage through equity participation on the premise of ensuring that their risks are controllable.With the improvement of China's economic strength,the insurance industry has been valued by the state and society and the scale of insurance funds is constantly expanding.Insurance is not only an expost compensation or payment tool,but also its financial functions such as financing and risk management,which have become increasingly prominent.As the insurance funds have the characteristics of long-term stability,the way of insurance participation can not only bring long-term financial support to the participating companies,but also improve their risk management ability.Therefore,based on the unbalanced panel quarterly data of non-financial listed companies in China from 2008 to 2018,from the perspective of insurance participation,according to the theory of enterprise network and the theory of information asymmetry,this paper empirically tests the impact of insurance participat ion on the capital market recognition of listed companies by using the individual fixed effect model,on this basis,further studies the impact of the heterogeneity of property rights and whether insurance companies hold A-shares restricted or not and differences in the level of corporate governance on the capital market recognition of listed companies.So as to provide empirical support for a more objective understanding of insurance equity participation and provide a theoretical basis for the insurance industry to better serve the real economy.It is found that insurance equity participation can signif icantly improve the excess rate of return of non-financial listed companies in China,that is,insurance equity participat ion can significant ly enhance the capital market recognition of non-financial listed companies in China.This conclusion has passed the explanatory variable endogenous test of the fixed effect method with instrumental variables and is consistent with the regression results of a variety of robustness tests.From the results of benchmark regression,we can also see that there is a signif icant negative relat ionship between asset-liability ratio and growth and corporate capital market recognition,while a signif icant positive correlat ion between return on assets and net cash flow ratio and corporate capital market recognition.It shows that China's stock market is not yet mature and the majority of investors pay more attention to the short-term performance of non-financial listed companies,while ignoring the potential benefits brought by their long-term development.By further studying the heterogeneity of property rights and the lim itat ion of tradable shares and differences in the level of corporate governance,it is found that ordinary investors in the capital market are more sensitive to the participat ion of insurance companies in non-state-owned listed companies and insurance participation can obviously improve the capital market recognition of non-state-owned listed companies.However,the impact on state-owned listed companies is very little.Insurance companies holding shares in unrestricted circulation has almost no impact on the capital market recognit ion of non-financial listed companies,while insurance companies' participation in restricted circulation can signif icantly enhance the capital market recognition of the participating companies;different from the listed companies with high level of governance,insurance equity participation plays a m ore obvious role in improving the capital market recognition of listed companies with low level of governance.The contribution of this paper lies in: from the perspective of insurance equity participation,it expands the factors that affect the capital market of non-financial listed companies and provides a theoretical basis for an objective understanding of the equity part icipat ion behavior of insurance companies;through the sub-sample study of non-financial listed companies with different property rights,it provides empirical evidence for the improvement of capital market recognition of non-financial listed companies with different property rights.Starting from distinguishing whether they are restricted tradable shares or not,this paper explores the heterogeneity of their impact on the capital market recognition of listed companies,which provides policy support for the correct selection of insur ance equity participation forms;through the sub-sample study of non-financial listed companies with different management levels,it provides empirical evidence for the improvement of capital market recognition of non-financial listed companies under the condition of heterogeneity of management level.