The Empirical Research On Institutional Shareholdings To The Influence Of Corporate Performance

China capital market has developed more than20years, in view of controllingshareholders’ equity is highly concentrated as well as stock rights are divided, there isserious insider controlling problems. As the third party between controlling shareholdersand the individual shareholders, institutional investors have advantages in size, informationand personnel, institutional investors can overcome the hitch problem faced by individualshareholders, so corporate governance and performance can be improved. Different typesof institutional investors vary in many aspects, which affect there objective function inparticipating in corporate governance and performance.According to whether there are business ties between institutional investors andinvestment companies, this paper divided institutional investors into pressure-sensitive andpressure-resist institutional investors, then examine impact of the different types ofinstitutional investors and the whole institutional investors on the performance of listedcompanies. This article is divided into five chapters:Chapter1: Introduction. Including the researching background, significance, ideas,methods, and innovations.Chapter2: The theoretical analysis of institutional investors affecting corporateperformance. Define the concept of institutional investors and Introduce the main types ofinstitutional investors, followed by the introduction of capital market efficiency theory,principal-agent theory and behavioral finance theory, then elaborate the factors andmethods of institutional investors affecting corporate performance.Chapter3: Review of foreign and domestic literature. On the basis of introduction ofshareholder activism, shareholder pessimism and compromise, this paper made systematicreview and evaluation on foreign and domestic literature.Chapter4: Empirical study of institutional investors on corporate performance. First,based on the review of foreign and domestic literature and theoretical analysis, proposedhypotheses, designed variables and build the regression model; Second, illustrate thesample selection and data sources; third, make descriptive statistical analysis of variables, show the regression results and make empirical analysis; At last, make robustness test onthe basis of controlling the endogenous problem.Chapter5: Conclusions and policy recommendations. First, make the conclusions ofthis paper; Second, according to the conclusions, putting forward the policy andrecommendations of the development of institutional investors; At last, make description ofthe limitations of this study.The empirical study found that the pressure-sensitive institutional investors can notproduce a significant role in the performance of listed companies, on the contrary, thepressure-resist institutional investors and the whole institutional investors can significantlyimprove company performance.The researching innovations of this article are as follows: on one hand, theresearching perspective is unique. Based on the pressure-sensitive and pressure-resistinstitutional investors, this paper examine impact of the different types of institutionalinvestors on the performance of listed companies. On the other hand, the researchingmethod is relatively new. To ensure the reliability of the conclusions of the study, theconclusions were tested not only by replacing the dependent variable but also2-stage leastsquares method based on the introduction of suitable instrumental variables.