An Empirical Study Of Institutional Investors Impacting The Value Of Listed Companies-Evidence From Chinese SME Board

In recent years, Chinese institutional investors gradually become the backbone of the securities market. through its participation in corporate governance,its impaction on the value of listed companies is also growing, thus it is becoming a hot topic of academic researching. Compared to individual investors, institutional investors have a more professional information collection and analysis abilities, a richer experience and more adequate capital and manpower reserves, these advantages made institutional investors to gradually become one of the major players in the capital market. Many foreign scholars have found that the behavior of institutional investors holdings can effectively improve corporate governance and the institutional ownership as an innovative governance mechanism into listed companies. "China Corporate Governance Guidelines" provides institutional investors should play a role in the appointment of company directors, management and supervision of incentive and major decision-making, the practice of the past decade also shows that institutional investors are increasingly focusing on participation in corporate governance. However, domestic scholars study the issue lately, has not yet formed adapted to China’s national conditions research system, the paper adapt China’s capital market actively encourage institutional investors to participate in macro-oriented corporate governance, the influence of institutional investors on the value of shares of listed companiesThere are three purposes of this study;first is to explore the impact of institutional investors on the value of the investment company, weather institutional investors shareholding can enhance the value of the company: secondly is to explore different types of institutional investors whether has different effects on the value of the company; the last is to explore the distinction between institutional investors’"value creation" and "value discovery" function.This paper has been divided into five chapters, the following is a brief introduction to each chapter:The first part is an introduction. First introduces the background and significance of the article; secondly review the research status of institutional investors, domestic and foreign scholars affect the value of shares of listed companies; once again describes the main content and research methods; concludes innovation of this paperThe second part is the theoretical analysis of institutional ownership affect the company’s value. First define the definition of institutional investors and their participation in corporate governance advantage; then introduces institutional investors to participate in corporate governance motive choice; once again the main factors affect the value of institutional investors; finally elaborated institutional investors affect the company Value Realization.The third part is the research hypothesis and empirical model building. The first part of the basis of the theoretical analysis presented in this paper and describes three hypothetical classification differences standalone basis and institutional investors and non-independent institutional investors; then select the relevant variables explained construct empirical models again; finally illustrates the data source and sample selection.The fourth part is the institutional investment affect the value of the empirical results of its analysis. First, in 2010-2014 sample data Chinese SME board listed companies descriptive statistics, correlation analysis and multicollinearity test, and then on the current value of the model and the lagged value model were a multiple linear regression, and the use of The dependent variable substitution done robustness test, the final result will return a comparative analysis to verify the assumptions article.The fifth part is the conclusion and prospect, summarizes the main conclusions of this paper, and based on the conclusions made specific policy recommendations, and analyzes the limitations and prospects for further study of this study..In this paper, considering the characteristic factors of various types of institutional investors, the use of 2010 to 2014 cross-sectional data of mixed small plates listed on the Shenzhen Stock Exchange, the company’s in, in the case of controlling other factors that affect the company’s value, select TOBINQ and ROA as being explanatory variables, respectively, from the perspective of the market value and the book value of the company’s value measured by standardized analysis and empirical research methods, systematic study of the influence of institutional investors holding behavior of corporate value, and ultimately reached the following conclusions:Overall stake (1) institutional investors positively correlated with the value of listed companies, is with the overall stake of institutional investors to increase investment and enhance the company’s value to a certain extent.(2) different types of institutional ownership has different effects on the value of listed companies. Independent ownership behavior of institutional investors on corporate value significantly enhance the role, rather than the influence of institutional investors on standalone value of the company is not obvious.Investors stake and the company’s current value and lagged value (3) organizations have shown a positive correlation, but compared to the impact on the company’s current value more obvious.(4) The empirical results show that the value of China’s listed companies and their asset-liability ratio was significantly negatively correlated, indicating that the sample companies did not properly use of financial leverage, but to enhance the value of the company to generate a reaction. The regression results also show that the company’s growth capacity and corporate value significantly correlated, indicating that growth will help enhance the company’s value more the better.Research contribution of this paper is twofold:first, the institutional investors are divided into independent and non-independent type categories, and use 2010--2014 China’s SME board listed companies empirical data to validate the types of institutional investors hold if the value of shares of listed companies will conduct different effects. Second, the use of institutional investors holding company of the value of data and profit lagged data to establish the control model, comparative analysis of the empirical results, in order to distinguish the "value discovery" and "value creation function" institutional investors.