A Research On Institutional Investor Participating In Corporate Governance

Institutional investors are important forces of capital market in various countries, and important factors of the optimization of corporate governance. After the 1980s, institutional investors of west countries have developed dramatically, simultaneously, the attitude of them towards corporate governance has remarkablly changed—from"with the foot voting"to"with the hand voting". It was called the rising of institutional investor activism by western scholars. The rising and development of institutional investor activism has consummated the balance of corporate's authority, become the important governance mechanism.After more than 40 years'development, institutional investors in the USA have substituted individual and familial shareholders gradually, become the biggest shareholders of big companies. The shareholding concentration degree kept on about 50 percent from 1987 to 1989. Under this background,"the Wall Street rule"has been restricted as the defensive mechanism of vindicating benefit of shareholders, institutional investors have adopted submitting shareholder bills, open criticizing, contesting the voting right of consigning and so on to respond the problem of anti-takeover, voting, board of directors and participating in corporate governance.Institutional investors have developed rapidly under the impetus of market mechanism and national policies in China after 1999's, each kind of institutional investor's property scale has increased rapidly, and institutional shareholding concentration enhanced obviously. Simultaneously, institutional investors started responding the problem of major stockholder's benefit violation by the way of voting, open criticzing and so on, cases of institutional investor participating in corporate governance appear continuously. However, from the scale, influence of institutional investors and motivation of participating in corporate governance, institutional investor participating in corporate governance of our country is still in the passive stage. Macroscopical circumstances of institutional investor participating in corporate governance of our country is transforming gradually along with the achievement of reform of shareholder structure.Currently, there are many limiting factors on institutional investor participating in corporate governance in our country, including institutional investors, listed companies, capital market, policies and so on. Therefore, we should take measures from institutional investors, listed companies, capital market, policy leading and so on to foster the system of institutional investors participating in corporate governance fowardly.