The Study On Investor Protection Of Listed Company And Corporate Culture

Securities market in China has experienced 20 years of development; the scale has seen continuous growth, and investors with an increasing number. But as the shareholders have been varied, interest conflicts between small and medium shareholders begin to arise and it influences the development of the enterprise. Although regulators continuously intensify efforts to introduce various laws terms and rules and regulations, to crack down on illegal behavior. Because of law enforcement, and the low efficiency of each listed company for law enforcement difference, law does not good safeguard the lawful rights and interests of investors. Therefore, many scholars transferred to firm-level variables, such as corporate culture to explore the effective measures to improve investor protection. Enterprise culture became a force to be reckoned with, which affect all aspects of the company, including the enterprise investor protection level.In this paper, the author based the study on the research before with bold inheritance and development, directly focus on the relationship of corporate culture and investor protection. Through the analysis of the cultural features of different enterprises, the author divided the corporate culture into three forms. Based on the latest research of investor protection index of investor protection research group (SUN YAT-SEN University 2010), the author examined the relationship through empirical regression. This studies show that enterprise culture takes a great toll on investor protection. A listed company's investor protection level can actively establish a good enterprise culture, reducing agency cost, constraint company management and big shareholder behaviors of infringements. Listed company, therefore, can establish or perfect its enterprise internal culture, reasonable guiding the value orientation of various interest groups, restore the confidence of investor and achieve a better market performance. In the long run, culture helps to maintain a sustainable development of the enterprises and its brand popularity.