Heterogeneous Institutional Investors Holding Shares In Listed Firms’ Performance In Impact Studies

In recent years, since the Chinese government put forward "extraordinary’ development institutional investors, institutional investors have achieved great development, increasingly dominant position in the capital markets. But different types of institutional investors in funding sources, business relations, administrative interference, and the laws and regulations have differences. These differences will directly affect their motivation and objective functions of supervision and corporate governance, leading to different types of institutional investors have a different impact on company performance. So from the perspective of heterogeneity to research the impact of institutional investors on corporate performance, this is all the more necessary. This helps deepen our understanding of the heterogeneity of institutional investors, for regulators to develop relevant policies and measures have some reference value.In General, institutional investors will increase governance standards through participation in governance corporate, and improving the corporate governance standards of performance as improvements in corporate performance. While there is heterogeneity between different institutional investors, leading to different institutional investors have different impact on company performance also. So this article according to the nature of the funds, administrative intervention and business contacts three differences to divided the institutional investor in China into independent institutional investors and non-independent institutional investors. Independent institutional investors mainly come from retail investors, funding is private in nature, and they are less affected by government intervention, while independent institutional investors and listed companies are generally only stock investment related, just as shareholders of the listed company to obtain investment income, so in order to ensure maximization of return on investment, they are actively participate in the governance of the company, improving the company’s performance. In the non-independent institutional investors, due to the public nature of the funds and the close relationship with local government, part non-independent institutional investors are more vulnerable to the administrative intervention. Because of the business contact with the investment company, another part of non-independent institutional investors are unable to implement effective oversight on company’s internal people. Based on this, this article brings research hypothesis, collects data, takes the company achievements as by explanatory variable, the institutional investor’ ownership percentage change for the explanatory variable, to empirical tests of different institutional investors holding performance of listed companies with different effects.Through regression analysis found that overall institutional investors’change in shareholding and corporate performance is significantly positive correlation; independent institutional investors’holding shares in proportion and the company performance in the1%level is significantly associated; non-independent institutional investors’holding shares in proportion and company performance is not significant correlation. This illustrates the active role of overall institutional investors benefited from the independent institutional investors. After the holding company’s stock, Independent institutional investors will be actively participate in the governance of the company, improving the governance structure of the company, improvement of company performance; because the size of holdings and conflict of interest, the non-institutional investors find it difficult to play a shareholder activism, so it is not prominent to improve corporate performance. This proves that we should devote major efforts to develop the institutional investors, especially the independent institutional investors, while also guide the non-independent institutional investors to display the active role, to promote our country capital market high-speed and effective movement.