The Impact Of Institutional Investor Research On Financial Risk Of Listed Companies

With the transition and upgrading of our country’s economy and the fulfilment of the domestic and international dual-cycle strategy,the maturity of China’s capital market is deepening,the institutional construction in all aspects is also improving,and the efficiency of market information transmission is gradually emerging.Now,an open,inclusive and transparent market environment has gradually formed.Institutional investor research,as a crucial part of modern investor relationship management activities,has a self-evident position in the open market.However,institutional investor research is still a relatively new concept for listed companies and financial institutions in China.At present,at the level of academic research,research on institutional investor research mainly focuses on the impact of institutional investor research on the market performance and governance decisions of the surveyed companies,and from the perspective of the entire A-share market.The research on financial risk mainly explores the elements that influence financial risk from the internal level and external market environment level of the company.Institutional investor research has both "internal" and "external" attributes.At present,academic research on the impact of institutional investor research on the financial risk of listed companies is relatively small.In addition,,the Growth Enterprise Market was established later and has higher tolerance for enterprise access,compared with the main board,but has higher requirements for the direction of enterprises.Most Growth Enterprise Market listed enterprises are hot industries and "specialized and special new" industries that are supported by the state.These emerging industries are higher in complexity and technology application than traditional industries.It also has the responsibility attribute of helping entities and encouraging entrepreneurship.Consequently,based on the data of Growth Enterprise Market listed companies,this paper explores the investigation concerning institutional investors,with a view to enriching the theoretical exploration of institutional investor investigation and financial risk,and puts forward reference suggestions for all parties in the capital market,which has high research value.The theme of this article is the impact of institutional investor research on the financial risk of listed companies,where listed companies refer to companies that issue stocks on the Chi Next.This article first constructs the research foundation of this article by conducting literature analysis on previous relevant studies.Then,it analyzes the impact of institutional investor research on the financial risk of listed companies from both theoretical and empirical perspectives.It is found that the more actively participating in institutional investor research,the lower the financial risk of companies,indicating that institutional investor research has a negative impact on financial risk.At the same time,due to the different depth of research,compared to the number of institutional investor surveys,the more times a listed company is surveyed by institutional investors,the more significant the reduction effect of institutional investor surveys on the company’s financial risk.Further analysis of the heterogeneity of R&D expenditures revealed that the negative impact of fundamental regression was more significant in listed companies with high R&D expenditure intensity.Finally,summarize the conclusion of this article and propose corresponding suggestions from the perspectives of listed entities,institutional investors,and regulatory agencies: at the level of listed companies,they should strengthen their internal control construction to respond to institutional investor research;At the level of institutional investors,they should strengthen their professionalism and discernment in order to select research subjects and frequencies more appropriately;At the regulatory level,regulatory agencies should provide institutional investors with appropriate policy space for research.