Research Of The Influence Of Institutional Investors On Performance Of Listed Companies

With the perfection and development of world’s stock market, as the main part of the stock market, institutional investors’impact becomes increasingly clear.The increase of proportion of institutional investors holding abandons the old and passive thought, and began to change into the shareholder activism. Compared to individual investors, as the third party strength between the controlling shareholder and investor’s, institutional investors have the funds, personnel and information advantages, can overcome the individual investors in the company’s governance "hitchhike" problem, and improve corporate governance, improve enterprise performance. But different types of institutional investors are different in many aspects affecting their participation in corporate governance objective function, which lead to different influence on the performance of the company, so this paper examines the effects of different types of institutional investors and the overall institutional investors on performance of listed Corporation,we aim at the proposition that institutional investors have influence on the company business performance through joining corporate governance, and analyze the proposition in theory and demonstration. From reviewing the relation among the institutional investors’ shareholding, the corporate governance and the business performance in theory, we think joining corporate governance is an effective way for institutional investors to have influence on the company business performance. Based on China’s A shares of listing Corporation, we research the institutional investors’ ownership, different types of institutional investors and institutional investors shareholders compared to the major shareholders of the listing corporation.Empirical study found, China’s institutional investors on the performance of listing Corporation has a positive effect; high proportion of shares of the fund is expected to improve the corporate performance, and the shareholding proportion of securities companies, QFII, insurance funds, social security funds and trust companies to improve enterprise performance is not significantly affected; institutional investors with respect to the major shareholder can improve enterprise performance.The contribution of this paper is:On the one hand, the research angle is meticulous. This paper studied six different types of institutional investors on the listing Corporation performance; on the other hand, the more perfect way. this paper further inspect through the variable substitution endogenous test and introduce appropriate instrumental variables regression three stage least squares method, to ensure the reliability of the conclusion of the study.