Institutional Investors And Management Efficency

After the election of the modern corporate system, due to the separation of ownership and management problems led to the production agency, which conducted the research has gradually become the focus of corporate governance theory. For the generation of agent, the owner must be the dealers, some degree of supervision, but the need for oversight activities to pay the owner to pay certain costs, and establish a series of supervisory and restrictive mechanism to monitor the operators. However, in the real market economy, the information transfer is not a zero cost, making the complete information and full rationality assumption does not exist, so the owner can not be through an effective mechanism to control operators, or even if there is a suitable approach is unreasonable in the economy, and the owner only through the continuous optimization theory and practice to move closer to the Pareto optimal state.The rapid rise of institutional investors, institutional investors generally hold a higher degree of equity features, which makes the past, characterized by highly fragmented shareholding structure has great change, institutional investors towards corporate governance is no longer a passive attitude of "voting with their feet", but actively to influence through its controlling stake in the company's important decisions, and then standardize the board of supervisors and other executive agencies, changes in the traditional corporate governance model to improve the efficiency of corporate governance, in the process to enhance performance through the company and the core competitive capabilities to obtain a higher return on investment.In this paper, based on the theory of corporate governance, through the analysis of institutional investors in corporate governance on the efficiency of corporate governance are two different economic effects-benefits to seize the benefits of convergence effect and the effect of the considerations, combined with institutional investors and economic characteristics of the content and HSBC Investment Bank for the specific case, the study draws institutional investors in corporate governance, corporate governance can be an effective solution to the principal-agent problems and improve the efficiency of corporate governance, and finally put forward based on the above analysis a complete listing of institutional investors to participate in Suggestions on corporate governance.