| Litigation risk is one of the risks that companies must face in the operation process,and it is a high cost way to solve the interest controversy between the parties.Therefore,how to resolve and prevent litigation risk has become a hot topic in academic circles in recent years.At present,the research on what affects corporate litigation risk mainly focuses on the macro environment faced by companies,while the micro factors that affect corporate litigation risk mainly focus on the perspective of earnings management and other financial performance.However,this paper believes that institutional investors,as a different party from large shareholders and small investors,will play a role in the company’s operation process.So,will institutional investors influence the litigation risk of companies by intervening in corporate governance? This is the problem that this article attempts to discuss with.Using theoretical analysis and empirical study methods,this paper tries to investigate the correlation between the institutional shareholding and company litigation risk.In this paper,A-shared listed companies in China during 2015and2017 are selected as study sample.First of all,explore the institutional ownership’s impact on litigation risk and analyzes the heterogeneity of institutional investors,property rights role in the mechanism of the effect.Then then introduces the internal control quality as an intervening variable to investigate the intermediary mechanism that institutional shareholding affects litigation risk.Finally,carried on the robustness test.This paper is divided into five chapters,including the following main contents:The first part is the introduction,mainly about the research background,significance,methodology,frame and innovations.The second part is the research literature review.In the third part,theoretical analysis and hypothesis are proposed.The fourth part is about the test method and model selection,while empirical test and analysis of this effect are also proposed in this part.Research inadequacy and prospects are mentioned in the end.Based on the above research frame,this article arrives at four conclusions:firstly,when other conditions remain unchanged,the institutional shareholding ratio is negatively correlated with the litigation risk of the company.Secondly,compared with independent institutional investors,independent institutional investors have a more significant restraining effect on litigation risk.Thirdly,compared with stateowned enterprises,institutional ownership has a more significant inhibitory effect on litigation risk in private enterprises.Fourthly,the quality of the company’s internal control does play a mediating effect in the impact of institutional ownership on litigation risk,which is incomplete mediating effect.The innovation of this paper can be stated as follows: firstly,this paper discusses the governance effectiveness of institutional investors’ shareholding from a new perspective of litigation risk and expands the research on the governance results of institutional shareholding based on the existing literature.Secondly,this paper introduces the intermediary variable of internal control to verify the theoretical mechanism of institutional ownership’s influence on litigation risk,which enriches the existing theoretical mechanism research.The possible research development direction of this article lies in the following three points.First,further classifies the litigation risk of the company.Second,introduce macro variables such as market environment and legal environment.Third,explore more intermediary mechanism between institutional ownership and litigation risk... |
