A Research On Information Disclosure Of China’s List Company Influenced By Institutional Investors

Institutional investors are not only the backbone of the national securities market, butalso an important fact to optimize corporate governance and to improve the quality ofinformation disclosure of listed companies. The paper is based on the institutional investors oflisted companies in China, researching the institutional investors on the impact of informationdisclosure of listed companies. We focus on the theory of this impacting mechanism which isprincipal-agent theory and institutional shareholder activism. The paper elaborates theintrinsic motivation and the ways of affection role of institutional investors on the informationdisclosure of listed companies after analysis of the essential attribute of the institutionalinvestors and investment characteristics. Combined with data of Shanghai’s Main Board listedcompany for the empirical analysis and discussion of the nature role and influence of China’sinstitutional investors on listed companies’ information disclosure.The empirical analysis shows that in a number of institutional investors, the funds (referto the general securities investment funds) and social security funds affecting the informationdisclosure of listed companies are more significant, other types of institutional investors,such as QFII, insurance funds, corporate annuities, financial companies integrated securitiesfirms, trust investment companies, banks, other financial institutions (such as investmentcompanies, asset management companies, investment groups), academic and researchinstitutions, their impaction of information disclosure of listed companies is not significant. Inaddition, from the empirical results also can be found that the quality of informationdisclosure of listed companies have significant influence factors including: institutionalinvestors annual average shareholdings of listed companies, the proportion of independentdirectors of listed companies, the size and Rate of return on common stockholders’ equity.Finally, based on theoretical analysis and empirical results, the specific recommendations areputting forward from the development of institutional investors, strengthen the capital marketsystem.