Research On The Impact Of Social Security Fund Shareholding On Company Performance

Since the establishment of the social security fund in 2000,the social security fund has carried an important task of ensuring the normal operation and stable economic development of the social security system in our country.Moreover our social security fund is different from the prudent management methods of the United States and other countries.Our social security fund can enter China's securities market to invest,because social security funds are related to the vital interests of everyone,the investment behavior of social security funds is even more attractive.In the past,social security funds were generally included in institutional investors for most researches,because Social security funds are part of institutional investors.At present,most of the literature focuses on the homogeneity of institutional investors,and less research on their differences in China.That is to say,most researchers include the social security funds in the institutional investors as a whole to study the impact on listed companies.This has led to the failure to clearly observe from the research conclusions that social security funds have any effect on listed companies.Because institutional investors' supervision and governance on listed companies and their impacts on listed company performance have been proven to be positive and effective in previous studies.As a government-backed institutional investor,Researchers believe that social security funds invest more than other institutions and have the characteristics of long-term investment and independent investment.The characteristics of long-term investment determine that social security funds generally do not have short-sighted behavior for short-term benefits.The characteristics of independent investment determine that social security funds will not be easily controlled by listed companies,so the social security fund pays more attention to the company's long-term interests,actively plays the role of "positive behavior of shareholders" in the investment process,supervises the management and operation of the enterprise,and makes the operating decisions of the listed company more scientific and effective,thereby promoting and improving the company's listing and operating performance.This article takes the data of Chinese A-share listed companies from 2009 to 2017 as the research object and conducts an empirical study on the sample data through a multiple regression model.It is found that after controlling other factors,there is a significant positive correlation between the social security fund's shareholding and the company's performance.That is to say,the shareholding of social security funds has a positive and significant impact on the performance of listed companies.This relationship reflects characteristics that the social security funds have fully played the role of "positive behavior of shareholders" due to the need for dividends,thereby affecting the operations of listed companies' performance.Further research finds that the impact of the social security fund's shareholding on listed companies with different property rights,listed companies of different sizes,and listed companies with different internal governance environments also differs.The role of the "positive behavior of shareholders" of social security funds have played a more prominent role in Non-state-owned enterprises,relatively small-scale enterprises,and enterprises with good internal governance.Finally,the endogenous problem between the proportion of social security fund shareholding and company performance is alleviated by the method of propensity score matching and difference in difference.First I use the propensity score matching(PSM)method to control the selective bias of sample selection,then the all sample companies are matched to be the most similar samples of the experimental group and the control group according to the matching indicators of the previous period of the shareholding.Two groups are the experimental group-the listed company held by the social security fund,and the control group-no social security fund The listed company holding shares,and then supplemented by difference in difference(DID)to estimate the net effect of the social security fund shareholding on the companies' performance,and finally conducted the robustness test of this paper by replacing the measurement index of the company 's performance of the explained variable.The later results still support the research conclusion of this article.In general,the research in this article confirms the "positive behavior of shareholders" hypothesis,showing that social security fund holdings are an important factor in the improvement of the company's operating performance.It has played a role in the governance of listed companies by social security funds and has improved the company's performance.This article uses empirical research to study the impact of social security fund holdings on the performance of listed companies.It has certain implications for the formulation of China's economic policies,and studies how China's social security funds can maintain and increase their value and how to consolidate and improve China's social security system,and is of great significance for ensuring its safe and stable operation.It also provides theoretical and empirical evidence and policy suggestions for how China's listed companies can improve their governance and corporate performance,and for improving the quality of China's listed companies and stabilizing our stock market.