A Study On The Route Of Institutional Investor Heterogeneity To Corporate Value

In western developed countries,institutional investors have replaced the status of individual investors become the main investors and actively participated the governance of company in the capital market.China's institutional investors were born late,but,under the support of the government policy,also have become developing.Although there are still some gaps compared with the Western countries,but they participated the governance more and more.In recent years,with the development of capital market,there are more types of institutional investors.Different types of institutional investors show different characteristics,so the enthusiasm of participation in governance,and the impact on the value of the company is also different.This paper focuses on the heterogeneity of institutional investors,not only on its impact on the value of the firm,but also attempts to solve the process of institutional investors affecting the value of the company,that is,how the heterogeneous institutional investors affecting the company's value.The heterogeneity of this paper mainly includes two kinds of classification,one is divided into stable institutional investors and unstable investors according to the stability,the other in accordance with the degree of professional investment,it is divided into professional institutional investors and non-professional institutional investors.And then we test the difference of different types of institutional investors on the value of the impact of the company.Furthermore,the study is committed to finding the two transmission path of institutional investors have to affect the value of company: the relationship between institutional investors and corporate value is subject to the actual control of the separation between ownership and control of the suppression of institutional investors through the impact of management investment and then affect the efficiency to the company value.The effect of institutional investors on the value of the company will be been weakened.First,when the degree of separation between ownership and control is hige,the actual controller is more motive to acquire private benefit.Second,the efficiency of management influence whether the institutional investors can affecting the firm value.This paper selects the sample from Shanghai and Shenzhen listed companies.Then we establishes the model to verify the hypothesis,and finally draws the following conclusions:(1)Stable institutional investors and non-stable institutional investors can significantly increase the value of the company,but relatively speaking,stable institutional investors are more powerful in enhance the value of the company.(2)Professional institutional investors have a significant positive effect on the value of the company,but non-professional institutional investors are not significant to enhance the value of the company.It shows that the influence of different types of institutional investors is different on the value of the company when the institutional investors are diversified.(3)The separation between ownership and control has a negative effect on the relationship between the stable institutional investors and the corporate value,but there is no moderating effect to the relationship between the non-stable institutional investors and the firm's value.(4)The separation between ownership and control has a negative regulatory role on the relationship between institutional investors and the value of company.The results show the first path of the institutional investors' influence on the value of the company.The governance effect of the institutional investors is affected by the control environment.According to the different characteristics of the actual controller,the different coping strategies are made to have different effects on the company's value.(5)Investment efficiency played a mediating effect role in the relationship between stability of institutional investors and the value of company.(6)Investment efficiency is a mediating variable in the relationship between professional institutional investors and the value of company.Validated the second path that how institutional investors influence the value of the firm.The main contributions of the article have the following three points:(1)institutional investors can enrich the relevant areas of literature research.(2)Based on the data of listed companies in China,the research results are more suitable for China's national conditions,and providing evidence for government and regulatory authorities to formulate policies.(3)Guide the company to introduce the appropriate type of institutional investors to better play the role of institutional investors and to improve the value of the company.