The Research Of The Influence Of Institutional Investors On Corporation Performance

Since the seventies of the twentieth century, Western countries began to securities institutions of stock market trends, and this is the beginning of the development of institutional investors. In recent decades, the Western institutional investors access to a rapid development. Their attitudes on corporate governance by "voting with their feet" to "hand to vote" In this international environment, China's institutional investors are also beginning to affect the governance of listed companies in China, but also improve the governance of listed companies part of a positive role in corporate performance.This article discusses the impact of institutional investors on corporate governance, then affecting the Corporate Performance. From the institutional shareholding, shareholding balance degree and the performance of listed companies related to the perspective of empirical analysis of institutional investors on the performance of listed companies in effect.Empirical analysis showed that: the higher the shareholding of institutional investors, the bigger the checks and balances holding, their participation in corporate governance, the higher the enthusiasm, the corresponding, the better performance of the company. This shows that institutional investors, not just "value finder", they are more of a "value creator". In China's securities market, there are institutional investors holding the company performance was better than no institutional investors held company performance.Finally, there are some suggestions based on empirical results. Strongly advocated the development of institutional investors, to encourage institutional investors to conduct joint, to expand its influence to establish a reasonable balance of ownership structure, and enhance the governance capacity of the company to further enhance the company's performance.