A Study On Heterogeneity Of Institutional Investors And Equity Of Cost

In the developed countries,institutional investors start to shift towards active shareholders,improve the corporate governance structure,ease financing constraints,and control the efficiency of investment.It has formed a prominent role in the new era.Since 2001,Chinese Commission has put up with the idea,the "extraordinary development of institutional investors" strategy.Since then,no matter what in the type,number and size of institutional investors,each of them has gained leapfrog growth,it has been the formation of securities.With the growing number of shares and promotion,institutional investors are becoming more and more important by degrees,which are experiencing the transition from negativism to activism.Institutional investors,as an important external governance mechanism,compared with individual investors,it has a unique advantage in the capital,information mining and analysis capabilities.In our own country system,institutional investors can show their own strength,and actively participate in corporate governance,reduce information asymmetry,alleviate the two kinds of principal-agent problems exist in the internal mechanism of corporate governance,reduce the agency cost,improve corporate governance level and thus reduce the cost of equity capital? At the same time,different institutional investors due to different sources of funds,investment style,the independence of the difference,whether it will has a different impact on the cost of equity capital? These are the main problems to be solved in this paper.Therefore,this paper based on asymmetric information theory,principal-agent theory,agency cost profit theory and corporate governance theory to study the institutional investors function,design model,from 2012 to 2015 A shares of listed companies as an example,to reduce the heterogeneity institutional investors,based on PEG mode to measure the cost of equity capital,explanatory variables and control the lagged variable data.In the course of the study,it controls financial leverage,asset turnover ratio,company size,rate of return on net assets,the company's growth,year and industry variables,at the same time,considering the heterogeneity of institutional investors,from a quantitative point of view,considering the differences in the holding period of institutional investors and the proportion of shares held by institutional investors will be divided into stable institutional investors and trading institutional investors;from the qualitative point of view in accordance with the commercialrelationship between institutional investors and investment companies,it will be divided into pressure resistant and pressure resistant,test the effects of different institutional investors difference on the cost of equity capital.Through the empirical analysis,we reach the conclusion:First,institutional investors and equity capital as a whole is negatively related to the cost of equity;second,when institutional investors are stable,the proportion of institutional ownership can reduce the cost of equity capital,when institutional investors for the transaction,the shareholding ratio cannot reduce the cost of equity capital costs;third,the securities investment fund,QFII fund as the representative of the independence of the strong pressure resistant institutional investors can significantly reduce the cost of equity capital of listed companies;to brokerage,insurance,lack of independence of strong institutional investors trust and other financial companies can reduce the cost of equity capital,but the result is not significant.According to the conclusion of this study,our country is experiencing the period of economic transition,the whole institutional investors play a certain role in corporate governance,reduce the cost of equity capital of the company,but different types of institutional investors and investment style play different roles.In line with the conclusion,this paper bring up with some corresponding advice and policies to promote the healthy and sustainable development of institutional investors.At last,the paper points out the research insufficiency and the further research prospects.