The Empirical Study Of Institutional Investors And Corporate Governance

The institutional investor activism rase during 1980s in the western countries.It mainly attribute to the development of capital market and controling market,the change of law in these countries is another reason.For the large scale of the institutional investor,they cannot get the long-term revenue from selling the stocks they hold,they need take take part in corporate governance to ensure their revenue and market place.Institutioal investor taking part in corporate governance has been an important mechanism . Along with the reform of non-tradable shares and adjustment of policies ,the institutional investor rapidly developed in China ,the power of influence corporate governance increasingly enhanced.Domestic and foreign scholars researched the institutional investor comprehensively,most of the researches focused in three aspects:the factor of institutional investor taking part in corporate governance,the main channel that institutional investor adopt to take part in corporate governance,the effect of institutional investor taking part in the corporate governance.Beside theories,many scholars adopt demonstration to research the problem,the results are different,the academe has not got a consistent viewpoint.For this reason,we need research the problem in different market and law.Because institutional investor taking part in corporate governance is a developing problem it is necessary to research this problem continuously.The institutional investor is enthusiasm in American,there are all kinds of institutional investors in American.We can leran good experience from research the practise of American institutioanl investor.Compare with American institutional investor we can find that the institutional investor in China is undergoing the period from confusion to perfect,the structure of institutional investor need perfect and relevant policies need enrich,institutional investor need flexible approach to take part in the corporate governance.In this paper,we use the date of listed company from 2004 to 2006.We get the listed company from Shanghai and Shenzhen stock market.The research include three aspects:the relationship between institutional investor and corporate performance,the relationship between institutional investor and mananger salary,the relationship between institutional investor and the operation of inside governance.From the result it appears that institutional investor can actively affect corporate performance,institutional investor can increase mananger salary,there isn't marketbal relationship between institutional investor and the inside governance.The structure of institutional invester should be optimized,investment fund,pension fund,insurance fund should be developed. At the same time,we should keep the capital market healthy and steady,perfect the inside governance of institutional investor,increase the quality of listed company,make a good environment of law.The date is an innovation,we use the date from 2004 to 2006,these dates can reflect the new trends on this topic.Another innovation is researching the topic from three approachs,the integrated research can reflect the topic systematically.