The Research Of The Influence Of Institutional Investors On Corporate Performance

Since in the late1980s, the institutional investors in Western capital marketsoccupy an increasingly important position increasingly mature the Western theoriesindustry research for institutional investors. With the continuous improvement anddevelopment of China’s capital markets, institutional investors, has become thebackbone of China’s capital market. Aroused extensive attention of scholars, theability to enhance the company’s financial performance on our institutional investorshave been scholars for the role of institutional investors in corporate governanceresearch, but most studies have not classification system for institutional investors,leading to different conclusions. Therefore, it is necessary to conduct a profoundstudy of the company’s financial performance for the different types of institutionalinvestors.This paper first reviews the related research results at domestic and abroad;then define the concept of institutional investors, corporate financial performanceand earnings management; then combined with the development of the status quo ofChina’s institutional investors, and to redefine the heterogeneity of institutionalinvestors;Furthermore, through the analysis of different types of institutionalinvestors to participate in the corporate governance of ways to explore the differentimpact on the company’s financial performance, and lay a theoretical foundation forsubsequent empirical research; followed the empirical part of2008-2011, the mostrecent sample data,696companies in Shanghai and Shenzhen A-shares listed on theMain Board.EPS, ROE，CROA as the dependent variable, the proportion of stock andchecks and balances to institutional investorsdegree as independent variables tocontrol the size of the company, asset-liability ratio, board size, ownershipconcentration variable pressure boycott and pressure-sensitive two types ofinstitutional investors holdings of listed companies’ financial performance. Throughempirical study the following completions:1. The overall institutional investors stake is positively correlated with the nextphase of the company’s financial performance. 2. Pressure-resistant institutional investors stake is positively correlated withthe next phase of the company’s financial performance, pressure-sensitiveinstitutional investors stake negative correlation with the next phase of thecompany’s financial performance.3Overall checks and balances of the holdings of institutional investors, withthe next phase of the company’s financial results is positively correlated.4. Pressure-resistant institutional investors holding balance degree with the nextphase of the company’s financial performance is positively correlated negativelyrelated to the checks and balances of the pressure-sensitive institutional investorsholding degrees with the next phase of the company’s financial performance.Above conclusions domestic research conclusion is consistent with theparticipation of institutional investors in corporate governance efficiency. Finally,the problem exists for institutional investors in China, put forward some suggestionsprompted institutional investors to enhance the financial performance of listedcompanies.