Study On The Relationship Between Institutional Ownership And Quality Of Information Disclosure From The Perspective Of Dynamic Endogeneity

The quality of information disclosure directly affects investment decisions of institutional investors and is directly related to capital market efficiency and the protection of investors' interests.As an emerging capital market with many problems,how to further take measures to strengthen the supervision and guidance of the information disclosure behavior of listed companies and explore approaches to improve the quality of information disclosure of listed companies have become the key issue for the sustainable and healthy development of capital market.Institutional investors have advantages in terms of capital,technique,talents and information,which makes them have the abilities and motives to participate in and perfect corporate governance to protect their own interests.As an important and special corporate governance mechanism,institutional ownership is expected to improve the quality of information disclosure.However,with the exposure of fund conspiracy,rat trading,speculative behavior and herd behavior of institutional investors,whether institutional investors are able to improve the quality of information disclosure or not and what is the true relationship between institutional ownership and the quality of information disclosure have been the hot spot of academic study.Based on the literature review on the relationship between institutional ownership and the quality of information disclosure,this thesis revealed that most current researches explore the relationship between institutional ownership and the quality of information disclosure in a static and unidirectional way and nearly all current researches ignore the dynamic endogeneity between institutional ownership and the quality of information,which may leads to biased and incomplete research conclusions.Therefore,on the basis of theory analysis of two-way interaction between institutional ownership and the quality of information disclosure,this thesis further pointed out dynamic endogeneity is existed between institutional ownership and the quality of information disclosure due to their interactive and intertemporal influence and constructed theoretical model of institutional ownership and the quality of information disclosure from the perspective of dynamic endogeneity.With companies listed in Shenzhen Stock Exchange in the period from 2006 to 2015 as study samples,this thesis re-explored the true relationship between institutional ownership and the quality of information by establishing simultaneous equation model and using the dynamic panel system GMM estimator to control the influence of dynamic endogeneity.In order to make the empirical research conclusion more reliable and convincing,this thesis also offered the empirical research conclusion from the perspective of exogeneity by using OLS estimator and from the perspective of static endogeneity by using FE model and 2SLS estimator to make comparative analysis at the same time.The empirical results indicated that institutional investors and the quality of information disclosure have interactive and intertemporal influence,dynamic endogeneity is existed between institutional ownership and the quality of information disclosure;from the perspective of dynamic endogeneity,the current year's institutional ownership has no significant effect on the current year's quality of information disclosure while the previous year's institutional ownership significantly and positively affects the current year's quality of information disclosure;both the current year's and the previous year's quality of information disclosure have significant and positive effect on the current year's institutional ownership.