Corporate Networks And Performance Due To Institutional Investor Holdings

At the beginning of the 20th century,with the continuous prosperity of the domestic capital market and the continuous improvement of laws and regulations,institutional investors in China have achieved rapid development with great professional advantages and resource advantages,and they have become an important force in the capital market.Traditional institutional investors simply focused on market news and were speculators who sought short-term profits.They sold stocks in response to unsatisfactory company performance.With the change of investment concept and the continuous improvement of its position,institutional investors have used their right to speak out and participate in important events such as corporate decision-making and executive equity incentives.They have become supervisors and participants in corporate governance.And an institutional investor always holds many company's stocks at the same time.Institutional investors become profitable by reducing the unit participation costs through "knowledge-sharing behavior" and are more willing to participate in corporate governance.At present,scholars mainly study the impact of the characteristics of institutional investors on corporate governance and corporate performance.They consider institutional investors as an individual and neglect the impact of a two-module network of "institutional investors-enterprise" and one-module network of"institutional investor network" and "enterprise networks" on corporate governance and corporate performance.Through communication and learning in social networks,companies acquire key resources,participate in corporate governance effectively,supervise and make recommendations on business decisions,and thus have an impact on company performance.Therefore,on the basis of traditional corporate governance,this paper incorporates social network as a new variable,examining the influence of factors such as the network location and structure hole position of corporate networks formed by institutional investors on corporate performance,examining the difference between state-owned enterprises and non-state-owned enterprises.At the same time,according to the heterogeneity classification of institutional investors,the effect of heterogeneous institutional investors on corporate performance under the network environment is verified.The empirical results show that(1)The central position and structure holes of corporate network can effectively improve corporate performance.(2)The central position and structural hole position of non-state-owned enterprises can effectively improve company performance,while the central position and structural hole position of state-owned enterprises have no significant effect.(3)Pressure-resilient institutions'central position and structure holes formed by investors' shareholdings can effectively improve corporate performance,while pressure-sensitive institutional investors do not have this effect.(4)The central position and structure holes of corporate network formed by stable institutional investors are better than those of trading institutional investors.In addition,the regression results of this article also verify the "shareholder activism theory" in the traditional model,which means that the higher the shareholding ratio of institutional investors,the better the performance of listed companies.This conclusion provides a certain reference for our listed companies to improve corporate governance mechanisms and enhance company value.