Research On The Institutional Investor's Participating In Corporate Governance

The essence of corporate governance is protecting the benefit of investors and dealing with the relations both shareholders and operators. However, in practice, the various countries' corporate governance have not shown satisfactory results in restricting the operators, the operators'damaging to the shareholders' interests have occurred frequently.Before the 1980s,the institutional investors are playing the passive role,and mainly implement the dieperser investment,they owned the less properation of the single company's stocks,so it is the fundamental way to use foot voting,which thay took part in the corporate governance.But since the 1980s,under the guidance and support of the government and relevant department, institutional investors are growing rapidly, various funds are rapid development.With institutional investors increaseing in proportion of shares hold,and their attitude to corporate governance have taken place,namely from the negatively indirect government to the positively direct government.The institutional investors participating in corporate governance have become common tendency to the development of various countries' corporate governance.Because the institutional investors can effectively solve the trouble that cost of surveillance is inside but income is outside, and the superiority of specialized information also greatly reduced the information cost, Therefore,as an effective external management , institutional investors (mainly to the identity of supervisors) take part in the corporate governance. Intervention of institutional investors alleviates benefit violation that the major stockholders to the minority shareholders, forms effectively surveillance in a certain extent and promotes the outstanding achievement of the company. But as a rational individual, institutional investors would take action only when they take part in the corporate governance, the benefits is greater than the costs. Through the game between institutional investors and operators,institutional investors and minority investors,institutional investors each other, we know that the factors that affect institutional investors to take part in the corporate governance are: the ration of shareholder,the cost of surveillance and the change of company's value.At present,during the transmission economy,excessively high ration of the state-owned share leads to the insider control problems unavoidable, it is a better way to solve the question of our country's stock holder's rights structure that using successful experience of institutional investors in corporate governance in western developed country. But because our country's institutional investors are at the development phase,and the correlation legal regime is imperfect, so there are many obstacles for our country'sinstitutional investors to take part in the corporate governance. This thesis puts forward three suggestions: vigorously develop the team of institutional, consummate institutional investors themselves and perfect related law.