Research On The Influence Of Institutional Investor Shareholding On The Financial Performance Of Listed Companies

As the shareholders of the company,institutional investors play their professional advantages,through participating in the company’s management decisions,and give full play to the governance effect.In our capital market,institutional investors have a position that can not be ignored,and more and more attention by the market parties.Institutional investors have information advantages and strong professional investment ability,and pay close attention to the dividend payment and fluctuations of the company.Moreover,for enterprises with different financial performance,their investment preferences are also different.Heterogeneous institutional investors also have obvious differences in their willingness and ability to participate in corporate governance,which will cause different degrees of impact on corporate financial performance.Therefore,this paper studies the relationship between the shares held by institutional investors and the financial performance of listed companies,which has certain practical significance for the improvement of corporate governance efficiency.At present,our country is in the key period to accelerate economic development.However,there are still many problems,such as fewer shares held by institutional investors,lack of effective market supervision and unbalanced development among different regions.At the same time,due to some deficiencies in the internal governance structure of listed companies,the governance efficiency of listed companies is low,the degree of information asymmetry is increased,which makes the problem of financing constraints more severe.Based on the above background,descriptive analysis,correlation analysis and regression analysis are used in this paper to investigate whether the shareholding of institutional investors has a positive impact on the financial performance of listed companies.What are the specific channels and ways of influence;Furthermore,this paper discusses how heterogeneous institutional investors’ holdings influence corporate financial performance in Chinese stock market.This is of great significance for us to understand the intrinsic relationship between institutional investor shareholding and corporate performance.Due to the late development of our capital market,the related theory is not perfect,and the research results of institutional investors are also less,so this paper makes up for the deficiency in this respect to a certain extent.Therefore,this paper selects the data of listed enterprises in Shanghai and Shenzhen A-share markets from 2012 to 2021 as the research object,and uses the dual fixed effect regression model of time and industry.Taking financing constraints as the entry point,this paper explores the relationship between institutional investors’ shareholding and financial performance,as well as their mechanism of action.Taking the shares of institutional investors,pressure-resistant and pressure-sensitive institutional investors as explained variables,the financial performance of listed companies as explanatory variables,and financing constraints as intermediary variables,the total asset growth rate,company size,asset-liability ratio,cash flow ratio,equity balance and other control variables,the regression model is established.Carry out empirical test and robustness test.The conclusions of this paper are as follows:(1)The shareholding of institutional investors is significantly positively correlated with corporate financial performance.Moreover,the shareholding of pressure-resistant institutional investors promotes corporate financial performance,while the shareholding of pressure-sensitive institutional investors does not promote corporate financial performance.(2)Financing constraints play an intermediary role between institutional investors’ shareholding and corporate financial performance.And it plays an intermediary role between the shareholding of pressure resistant institutional investors and corporate financial performance;There is no mediating effect between the shareholding of pressure-sensitive institutional investors and corporate financial performance.