Institutional Investor Research And Total Factor Productivity Of Enterprises

The report to the 19 th National Congress of the Communist Party of China pointed out that the Chinese economy has shifted from a stage of high-speed growth to a stage of highquality development,our country in a critical period of transforming the growth model,optimizing the economic structure and shifting growth drivers.Nowadays,with the rising cost of labor and other factors and increasingly serious resource constraints,the extensive and inefficient growth model relying on the low cost of factors is not sustainable.Transforming the economic development mode is the inevitable choice to achieve higher quality and more sustainable development,as well as the only way to realize socialist modernization in China.Improving the total factor productivity is the power source of high-quality economic development.As the basic unit of economic activities,improving the total factor productivity of enterprises is the key to achieve high-quality economic development.Therefore,it is particularly important to identify the factors that affect the total factor productivity of enterprises and explore how to improve the total factor productivity of enterprises to promote economic transformation and growth.As an important participant of our capital market,institutional investors also exert a great influence on the development of enterprises.Compared with individual investors,institutional investors are more specialized and standardized,and pay more attention to the long-term development of enterprises.In order to safeguard their own interests,institutional investors will conduct research on target enterprises to obtain incremental information that is helpful for their economic decision-making.The positive role of institutional investor research on corporate governance and information disclosure has been confirmed by many scholars.Although a few scholars have conducted researches on the relationship between institutional investors and enterprise TFP,they are only based on the perspective of institutional investors’ shareholding,and few scholars have studied the impact of institutional investors on enterprise TFP from the perspective of institutional investors’ research.The A-share listed companies of Shenzhen Stock Exchange from 2013 to 2020 are used as research samples in this thesis,and based on the information effect and governance effect of institutional investor research,this thesis analyses the relationship between investor research and total factor productivity of enterprises from the perspective of agency problems.This thesis review and summarize the existing literature on the influence factors and economic consequences of institutional investor research,and the influence factors of enterprise total factor productivity.And combine with theory information asymmetry theory,signal transmission theory,principal-agent theory and investor relationship management theory,to provide the basis and framework for the theoretical analysis of the relationship between institutional investor research and enterprise total factor productivity.Based on theoretical analysis,this thesis holds that institutional investor research has information effect and governance effect,which can alleviate the information asymmetry inside and outside the enterprise,restrain the misbehavior of the enterprise management,standardize enterprise management and reduce agency costs.The alleviation of agency problems will help promote enterprise innovation and improve the efficiency of resource allocation,which is conducive to the improvement of enterprise total factor productivity.The hypothesis that institutional investor research can promote the improvement of total factor productivity of enterprises has also been confirmed by the subsequent empirical results,and this result remains valid after distinguishing the types of institutional investors.This thesis tests the robustness of the baseline regression results,this includes addressing the endogeneity problem and making changes to the measurement of explained variables and explanatory variables.The robustness test results are basically consistent with the benchmark regression results of this thesis,indicating that the conclusions drawn in this thesis are reliable.Further,this thesis also conducted an empirical test on its mechanism,and explored the influence of the depth of institutional investor research and the moderating effect of the degree of product market competition on the relationship between institutional investor research and enterprise total factor productivity.Through the combined analysis of normative research method and empirical research method,this thesis draws the following conclusions:(1)institutional investor research can promote the improvement of total factor productivity of enterprises;(2)The research activities of institutional investors can promote the total factor productivity of enterprises by easing the agency problems of enterprises;(3)When institutional investors conduct research on enterprises,the more questions they ask and the longer the answers enterprise give,the greater the promotion effect on the total factor productivity of enterprises;(4)The positive effect of institutional investor research on the total factor productivity of enterprises is more obvious when the degree of product market competition is low.The study of this thesis not only enriched the relevant literature of institutional investors’ research on economic consequences and total factor productivity on influence factors,but also provided some policy suggestions for related parties,which is conducive to promoting highquality economic development.