Research On The Influence Of Institutional Investors' Participation In Corporate Governance

In recent years,with the continuous development and improvement of the capital market,institutional investors in our country,regardless of scale,quantity,shareholding ratio have been significantly increased,and gradually become an important force in the capital market.The development of foreign capital market is very early,the research on institutional investors ' participation in corporate governance is relatively early and there are more relevant case studies.In contrast,the development of institutional investors in China is relatively late,and relevant case studies are still lacking.Therefore,this paper studies the impact of institutional investors on corporate governance in this context,the main research work includes:Firstly,based on the relevant concepts of institutional investors and corporate governance,this paper combines the theory of equity structure,principal-agent theory and information asymmetry theory,as well as several common approaches of institutional investors to participate in corporate governance,which lays a theoretical foundation for the influence of institutional investors on corporate governance.Secondly,this paper takes the event that the institutional investors of DS vetoed the reorganization plan as the object of case study,and analyzes the incident in the following chronological order:(1)Shenzhen maoye began to buy DS shares in the secondary market;(2)Shenzhen maoye increased its holdings of DS shares to the red line in the secondary market;(3)The management of DS urgently announced the suspension and proposed the reorganization plan;(4)The management of DS rearranged the reorganization plan;(5)the DS convened the provisional shareholders' meeting to discuss the reorganization plan,and the restructuring plan was rejected.Then,this paper studies the motivation of the purchase of DS by Shenzhen maoye,and the reason why the restructuring plan proposed by DS was rejected by institutional investors.Shows that institutional investors headed by fund have played a key role on the general meeting of shareholders.On this basis,the following three aspects of analysis are carried out:(1)The financial performance of DS in the following years,include four aspects: debt paying ability,operation capacity,profitability,development ability;(2)the event research method is used to analyze the reaction of the incident to the market;(3)This paper examines the risk of institutional investors participating in corporate governance,which includes strong speculation and limited capabilities.Finally,through the above case study,this article mainly obtains the following three conclusions:(1)When institutional investors take part in the voting at the shareholders' meeting,it plays a role in the relatively dispersed shareholding structure of DS;(2)Institutional investors participate in corporate governance by "voting with hands" rather than traditional "voting with the feet".Institutional investors reject the restructuring plan at the shareholders' meeting,which is the result of institutional investors' active participation in corporate governance.(3)The case shows that institutional investors have the effect of safeguarding the interests of minority shareholders in the company's important matters.Through the case analysis,this paper draws the following enlightenment: standardizing the operation of institutional investors,optimizing the ownership structure of the company and perfecting the corporate governance system.