Research On The Protection Of Minority Shareholders Influenced By The Institutional Investors

The protection of minority shareholders is one of the core issue in corporate governance, as well as the basic goal in corporate governance. In the context of the separation of two rights(ownership and control) and information asymmetry, major shareholders of listed companies (controlling shareholder) occupy the interests of outside investors(minority shareholders and creditors) through a series of means, invade the interests of small shareholders. The shareholder activism of Western countries shows that institutional investors are helpful to address the second principal-agent problem.In the first half of 2000, China Securities Regulatory Commission consider that develop institutional investors ultra-conventional and creatively. Based on this, the paper discusses the relationship between the institutional investors and the protection of minority shareholders, explore how the institutional investors affects the protection of minority shareholders. At the same time, the paper divides the institutional investors into five categories which are fund, securities, insurance, social security and QFII, and then discusses the influence of five institutional shareholders against the protection of minority shareholders separately.From theoretical and empirical aspects, the paper discusses how the institutional investors affect the protection of minority shareholders. In theory, the paper summarized the related research of domestic and foreign scholars, and then analyze the necessity and possibility the institutional investors affect the protection of minority shareholders. Finally, it interprets the way that the institutional investors affect the protection from the perspective of independent directors and information disclosure. At the basis of theoretical research, the paper analyzes the Sample data about 405 listed companies of Shenzhen Stock Exchange in 2007.It mainly uses correlation analysis, independent samples T test, partial correlation analysis and regression analysis and so on. The empirical results show that institutional investors can play an active role in information disclosure of listed companies, thereby affect the protection of minority shareholders, however it has weaker influence on independent directors. Also, it shows that the funds have the stronger influence in information disclosure, and then the QFII also have a certain impact.At last, it make a summary of the paper, propose the corresponding recommendations, analyze the inadequacies of the research and point out the direction of further research.