Insurance Companies’ Significant Shareholding,internal Control And Firm Value

In recent years,China’s insurance industry has developed rapidly,while the rate of return on fixed income assets has continued to decline,insurance companies are in urgent need of new investment channels,and equity investment in the capital market has become a choice,which has promoted the occurrence of insurance companies’ significant shareholding.In 2014,insurance companies’ significant shareholding emerged in China’s A-share market,and insurance funds gradually appeared in front of the public.In 2015,insurance capital was fierce,and in just one year,there were more than 50 card raising incidents in the A-share market,involving many enterprises.In view of this,this paper studies the long-term impact of insurance companies’ significant shareholding on listed companies,pays attention to whether the holding of large shares by insurance institutions has an impact on the value of firms,and studies the role of internal control on the relationship between insurance companies’ significant shareholding and firm value.In order to more intuitively reflect the effect of insurance companies’ significant shareholding,this paper uses PSM-DID for empirical research,selects the time point of 2015 for insurance companies’ significant shareholding,and uses the financial data of 2012-2020 for regression analysis of the enterprises that will be held up in this year.The empirical results of the article are: First,the insurance companies’ significant shareholding is significantly positively correlated with the firm value,and the insurance companies’ significant shareholding is delayed by one year into the return,and the results are more significant and the impact coefficient is greater.Second,the coordination effect of internal control in the relationship between insurance companies’ significant shareholding and firm value is not significant,but after the regression of internal control quality grouping,it is found that compared with the high internal control quality group,the insurance companies’ significant shareholding in the low internal control quality group can positively and significantly affect the enterprise value.Third,further study of the impact of the difference in the nature of the enterprise on the relationship between the insurance companies’ significant shareholding and the firm value,the results show that in non-state-owned firms,the insurance companies’ significant shareholding significantly affects the firm value;in the state-owned firms,the impact of the insurance companies’ significant shareholding on the firm value is not obvious.The above conclusions show that after the insurance companies’ significant shareholding,the participation of insurance institutions in corporate governance can promote the improvement of firm value,especially in firms with low internal control level and non-state-owned firms,insurance institutions can play a more professional governance role,which is conducive to the development of enterprises.In this regard,this article puts forward the following suggestions for policy makers,insurance institutional investors,and invested enterprises: A policy maker should promote the investment of insurance funds into the market.Second,insurance institutional investors should make long-term investments and actively interact with enterprises.Third,invested enterprises should attach importance to the participation of insurance institutions in corporate governance.