Research On The Impact Of Common Institutional Ownership On Corporate Investment Efficienc

This paper selects A-share listed companies in Shanghai and Shenzhen from2012 to 2020 as research samples to empirically test the impact of joint institutional ownership on enterprise investment efficiency and its mechanism,and analyzes the moderating effect of corporate governance level on the relationship between them.The results show that joint institutional ownership improves the efficiency of firm investment,and this effect is more obvious in firms with low level of corporate governance.The mechanism test shows that reducing the agency cost and improving the quality of accounting information are important channels for joint organization ownership to improve the investment efficiency of enterprises.In the further analysis,the investment efficiency types of subdivided enterprises are underinvestment and overinvestment,and the test finds that the ownership of joint institutions restrains the management’s overinvestment behavior through the supervision and governance effect.Finally,after a series of robustness tests,such as substitution variable measurement method,propensity score matching method and Heckman two-stage model,the research conclusion still holds.This paper’s research provides experience reference for our country government department market regulation,policy-making and coordinating resources etc.The research shows that enterprises can improve corporate governance by virtue of the information connection advantage of co-institutional investors and industry sharing mechanism.Enterprises can make use of this new ownership mode in the capital market to build a high quality,high efficiency and high level of capital market,to help China’s economic transformation and upgrading,serve China’s high-quality economic development and national governance capacity modernization.Government departments should correct understanding of common ownership of the positive role of the enterprise,perfecting the assessment mechanism of the ownership of a common institutions to create a good investment environment for the common institutional investors,at the same time to provide institutional guarantee for compliance of common ownership,strengthen market supervision and common ownership institutions are the key points in improve corporate governance efficiency.This is mainly because,as an informal system,joint institutional ownership can make up for the deficiency of formal system to a certain extent and improve the investment efficiency of enterprises by giving play to the synergistic governance effect.Secondly,for co-institutional investors,the level of specialization should be constantly improved,so as to give full play to the synergistic effect of the industry and the supervision and governance effect between enterprises,facilitate the flow of information between enterprises,and reduce the agency cost of enterprises while improving the quality of accounting information.Give full play to its role in improving the quality of accounting information and reducing agency costs.Finally,enterprises should give full play to the collaborative governance function of joint ownership by institutions,optimize the governance environment from the perspective of improving the corporate governance system,continuously improve the governance level of listed companies,and promote the long-term development of enterprises.This is mainly reflected in the influence of joint institutional ownership on the investment efficiency of enterprises is more obvious in the enterprises with poor corporate governance.