The Positive Research Of Institutional Investors Involving In Corporate Governance In China

In general, the development and the maturity of the institutional investor is an important sign of the capital market. With the growing of the institutional investors by the 1980s, there was a wave of activism for the institutional investors in the western developed capital market, especially in the US. The institutional investors are not only the key character of the securities markets, also the main element of the optimizing the governmance of the corporate. Now the Chinese securities market is in the step of developing and reforming, the faultiness of the corporate governmance blocks the development of Chinese capital market and listed firms healthily. With the rapid expansion of the size of institutional investors in recent years, the active wish of the involving in the corporate governmance to protect their own interests and get long term income is more and more obvious. The aim of this dissertation is to discuss the effect of the institutional investors evolving the corporate governmance in China and make some case studies.The thesis is based on the following order to develop the viewpoints.Based on the review of related literature,the anciently scholastic investigative productiong and deficiency have been analyzed.After researching the developed process of the institutional investors abroad to participate corporate governace,sum up the experiences and revelation of the institutional investors abroad to participate corporate governace.Then the paper analyses that Chinese corporate governace is unique and it is necessary for Chinese institutional investors to play an active role in corporate governace.At last,for the sake of validaing whether Chinese institutional investors could improve corporate governace,the paper choses twice institutional investors as investigative object,and then demonstrate the affection to the corporate governace.Firstly,the paper put forward the hypothesis whether the proportion of the institutional shareholders holding has the relation with corporation performance,and accordingly design the regression model .The empirical study is carried out through combining the descriptive analysis,partial correlation analysis and multiple linear regressions to test the correlation betweenthe proportion of the institutional shareholders holding and Tobin's Q, CoreROA,CFROA.The paper reaches the conclusion that there exists linear with the proportion of the institutional shareholders holding and corporation performance.Secondly,the paper put forward the hypothesis whether the proportion of the institutional shareholders holding has the relation with Corporate Governance Index.The empirical study is carried out through combining the descriptive analysis,partial correlation analysis and multiple linear regressions to test the correlation between the proportion of the institutional shareholders holding and Corporate Governance Index. The paper reaches the conclusion that there exists linear with the proportion of the institutional shareholders holding and Corporate Governance Index.The empirical study demonstrates that in our country corporate governace has been improved because of the institutional investors.Finally, based on the above theoretical analysis and empirical results , the paper has put forward some political suggestion to the improvement our institutional investors participating in the corporate governace .