The Research Of The Influence On Performance Of Listed Companies In Our Country By Institutional Investors’ Shareholding

The institutional investors of western developed countries began booming in the 1980 s, affirming the role of institutional investors, China put forward the strategy of "extraordinary development of institutional investors" in 2001.Along with the group of institutional investors, they have been becoming the important power in the securities market. At the same time, with the higher and higher proportion of stock share, institutional investors have abandoned the past passive negative ideology, and began to perform actively participating in corporate governance to achieve the long-term benefits-which is called “shareholder activism”. But whether institutional investors can actually participating in corporate governance, and then affect corporate performance and their own benefits, and the effect is positive or negative, these has been a controversial issue at home and abroad in recent years.In this paper, I have studied the impact on the performance and influence mechanism of listed companies in our country by institutional investors through standardize research and empirical research method systematically.This article first reviews the research achievements of scholars at home and abroad, and then through further theoretical research is implemented to explore its function mechanism- agency cost. But considering the difference between different categories of institutional investors, they could be divided into independent institutional investors and dependent institutional investors, and then empirical research the impact of these two types of institutional investors on corporate performance results and the influence mechanism of the difference. The empirical results show that the whole institutional investors have a positive effect to the promotion of corporate performance, the higher the institutional investor shareholding, the more you play the role of shareholders to participate in corporate governance actively, through reducing the agency cost to improve corporate performance. Independent investors can significantly improve the corporate performance and reduce agency cost, rather than independent institutional investors are unable to effectively participate in corporate governance.