An Empirical Research On The Impact Of Institutional Investors' Shareholdings On Corporate Performance With GEM

With the continuous development and improvement of China's capital market,institutional investors have developed rapidly.At present,China's capital market institutional investors have gradually formed a diversified development pattern with securities investment funds as the mainstay and other types of institutional investors coexisting.The development of institutional investors has injected new impetus into the capital market,and the impact on the performance of listed companies has become increasingly prominent,which has also attracted wide attention of researchers.However,the existing researches mostly refer to listed companies on the main board,and little research on listed companies on the GEM.Since its launch in 2009,the GEM has played an important role in the financing of SMEs and the development of high-tech enterprises.Therefore,the impact of institutional investors' holdings on the performance of the company on the GEM is worth further discussion.This paper selects 350 companies listed on the GEM from 2013 to 2017,with a total of1750 samples.Based on the theory of effective market theory,principal-agent theory,stakeholder theory and cost-benefit theory,the principal component analysis method is used to construct the comprehensive evaluation index of corporate performance,and the regression analysis is carried out through the fixed effect panel data model.The empirical research results show that the overall shareholding of institutional investors in GEM listed companies has a positive effect on the improvement of corporate performance.Different types of institutional investors' shareholdings have different effects on corporate performance.Pressure-sensitive institutional investors represented by insurance companies have no significant impact on corporate performance,while pressure-resistant institutional investors represented by securities investment funds can significantly improve corporate performance.The higher the equity balance between the institutional investor's shareholding and the shareholding ratio of the largest shareholder,the better the company's performance.The level of corporate governance will affect the role of institutional investors' shareholding in corporate performance.In companies with low governance levels,institutional investors can better enhance corporate performance by participating in corporate governance.Finally,based on the above theoretical analysis and empirical research conclusions,this paper proposes corresponding rationalization proposals.