Institutional Investor Research And Investment Efficiency Of Listed Companies

Investor relationship management is a management philosophy that spans the field of financial theory and marketing,and is highly regarded by western capital markets.Research shows that investor relationship management has a high strategic significance,which can alleviate the information asymmetry and agency problems between listed companies and investors,enhance investor confidence and protect the interests of investors.In China,the financial fraud scandals of listed companies and the events of damage to the interests of minority shareholders have occurred,the relationship between investors and listed companies is tense and they are facing a serious crisis of confidence.In this environment,the investor relationship management of listed companies has been implemented.As an important means to protect the interests of investors,whether the investor relationship management can give full play to its effectiveness and promote the effective operation of the capital market is a key issue that must be paid attention to in order to realize the healthy development of the capital market.The core content of investor relationship management is to strengthen the information communication between listed companies and investors.Institutional investor research,as an investor relation activity,is a direct communication mechanism for information exchange between management and investors,which is conducive to the realization of information transmission.There are relatively few studies on the relationship between investor research and investment behavior of listed companies.And as an important means of investor relationship management,can institutional investor research improve the investment efficiency of listed companies and curb their inefficient investment by alleviating the information asymmetry and agency problems?The GEM of China has gathered a large number of high-tech enterprises,and based on the protection of high-tech and patent,the company seldom shows relevant project information to investors,which leads to severe information asymmetry.In this case,there is more information mining space for institutional investors to conduct research on companies.Therefore,this paper starts from the information of institutional investors' research activities disclosed by the GEM listed companies in 2012-2016.By sorting out and analyzing the empirical data,this paper studies the relationship between institutional investor research and investment efficiency of listed companies.This paper finds that institutional investor research can effectively improve the investment efficiency of listed companies and restrain their inefficient investment behaviors.Moreover,compared with other forms of research,field research has a more significant inhibitory effect on inefficient investment.Further research indicates that the research has a more significant inhibitory effect on inefficient investment of the companies with low institutional shareholdings.And the inhibitory effect of institutional investor research on inefficient investment is particularly significant in under-investment.