Research On The Influence Of Different Institutional Investors On Firm Performance From The Perspective Of Agency Cost

Since the rise of institutional investors in western developed countries in 1980,"shareholder activism" has gradually become popular in Western academic circles.The impressive achievements made by institutional investors in western countries have attracted Chinese scholars' curiosity and learning.Shortly thereafter,under the background of the slogan of “Creativity and Development of Institutional Investors”,institutional investors began to sprout and grow in China,and gradually became the backbone of China ' s securities market as the conditions of policy and economy became better.With the increase in the scale and quality of the organization,the investment concept has also been“upgraded”,changing from the negativity ideology in the past to the activist idea of actively participating in corporate governance,changing company performance results,and seeking long-term benefits.In recent years,institutional investors have indeed had a large or small impact on the development of Chinese companies,but whether the impact is positive or negative,scholars' answers are uncertain..As a result,we will question the effectiveness of institutional investors' governance and their ability to improve company performance.In most of the literature,the relationship between institutional holdings and performance is more often driven by the causal relationship,and there are few ways to further explore the path of institutional investors to corporate performance.For China's private listed companies,it is extremely necessary for institutional investors to help.Because in China's economic development,private listed companies have an irreplaceable important role.However,such an important one is like a serious illness.There are more serious problems of entrusted agency,which seriously hinder its healthy development.If relying on the strength of your organization,private listed companies may be able to make private listings "sick and snagging." So,can institutional investors really influence company performance? Is the transfer link between them the agency cost? This is an interesting question that deserves our exploration.This article takes the 2013-2016 data of China's Hushen and Shenzhen A-listed private listed companies as an observational sample,based on the theories of shareholder activism,principal-agent,stakeholders,and cost-benefit,and based on the review of relevant literature,this paper will include institutional investors.Divided into pressure-resistance and pressure-sensitive,study the effect of heterogeneous institutional investors on firm performance,and the intermediary effects of the two types of agency costs.The results of the study show that:(1)The overall shareholding of institutional investors has a positive impact on corporate performance.The key to this positive effect comes from the positive effect of pressure-resilient institutional investors on corporate performance.(2)Pressure-sensitive institutional investors' stock ownership is significantly negatively correlated with corporate performance.(3)The overall shareholding of institutional investors and pressure-resilient institutional investors are negatively correlated with the agency costs of the first category(management agency costs)and with the agency costs of the second category(the agency costs of the controlling shareholders)are not significant.(4)The overall shareholding of institutional and pressure-resilient institutional investors can influence corporate performance through two types of agency costs.Finally,based on the conclusions of the research,targeted policies will be proposed to make institutional investors develop better and toimprove corporate performance.The limitations and prospects of this study will be discussed.