Research On The Role Of Institutional Investors' Intervention In Corperate Governance Of Listed Componies In China

Since the 80's of last century, the institutional investors'"activism" has rosen gradually in the securities markets of British, American and other Western countries.It is mainly due to the increasing development of the stock market and improvement of the laws and regulations in these countries. As institutional investors increase the proportion of ownership, the attitudes they treat the corporate governance changed from passive to active management. The institutional investors'active participation will help to improve target companies governance structure and improve the corporate performance, while, by actively participating the corporate governance, institutional investors have access to long-term investment returns to maintain their position in the stock market. After SFC the extraordinary development of institutional investors, institutional investors in China's capital market has developed rapidly in recent years, with the completion of the share reform and related policies and regulations to further improve corporate governance of institutional investors to participate in the ability and enthusiasm is gradually increased.Many domestic and international scholars studied in-depth the relationship between investors and corporate governance these studies involve institutional investors'role in corporate governance, the way of participating corporate governance and the effects of participating corporate governance. On the basis of the theory study, some scholars use the methods of empirical analysis to study the issue, but the empirical conclusions drawn are not consistent, it suggests that the scholars'studies about the relationship between institutional investors and corporate governance are still controversial. Therefore, it is necessary to further study the relationship between institutional investors and corporate governance.In this paper, theoretical research and empirical research methods is combined, mainly research the relationship between institutional investors and corporate governance in China. First, review the existing domestic and international literature on the institutional investors'impact to corporate governance, the relationship between institutional investors and corporate performance ,the relationship between institutional investors and executive compensation. Then analyze the mechanism institutional investors participate in corporate governance, institutional investors were involved in corporate governance of the motives, methods and effects were analyzed in detail. And special situation in our country, in-depth analysis of corporate governance of institutional investors to participate in the status and institutional investors in corporate governance problems. On this basis, we use the data in 2009 on listed companies in China, with the empirical method to study the market of institutional investors on corporate performance and the impact of executive compensation. Empirical results are: institutional investors and listed companies from the performance indicators between the rate of total assets net of view, the proportion of institutional investors holding the company's total assets and net income and a positive correlation between rate, indicating that institutional investors in China those involved in corporate governance to improve the company performance; From institutional investors with total assets of listed companies net rate of relations, the proportion of institutional investors holding the company's total assets and net income and a positive correlation between rate; from institutional investors and listed companies holding executive pay scale empirical results, the proportion of institutional investors increased holdings of listed companies increased the level of executive pay. Finally, conclusions on the basis of empirical research, in order to better play our institutional investors in the role of corporate governance put forward some policy recommendations.