Institutional Investor Competition And Corporate Performance Re-study

Nowadays,institutional investors are becoming more and more important in China's capital market.Many people have studied the impact of institutional investors'shareholding on corporate governance,and had not reached a consistent conclusion,which is because of the heterogeneity between the various institutions.When researchers view multiple institutions as a whole,there is no guarantee that institutions will have positive motivations with the same direction of action and similar forces.Therefore,I try to measure the competition of institutional investors by the number of shareholding institutions,and describe the emergence and effect of the incentives of institutional investors.Compared with ordinary investors,institutional investors have scale and information advantages which including private information and expertise.Institutional investors who have more information will take advantage of their strengths to get the best return on their portfolios.In the competition of institutional investors,collective action and liquidity will affect the incentives of the company,which will affect the company's performance level.I selected all the non-financial listed companies listed by Shanghai Stock Exchange and Shenzhen Exchange in 2012-2017 as the research object,and examined the impact of institutional investor competition on company performance through fixed effect panel regression and panel quantile regression model.The study found that:(1)There is a significant positive correlation between institutional investor competition and company performance.However,at different quintiles,There are significant differences in the trends of regression coefficients,whether at different levels of significance or under different performance indicators.(2)I divided the sample into two categories:state-owned enterprises and private enterprises,and then conducted panel quantile regression analysis.I found that when the research objects are state-owned enterprises,the positive correlation between the number of shareholding institutions and the company's performance is more significant,and the relationship is not significant when the research objects are private enterprises,which shows that the information environment will have an impact on the relationship between institutional competition and company performance.In the case of poor information environment,institutional competition will make institutional investors more active,because institutional investors can use the information advantage to obtain considerable trading income and supervise management.(3)Based on the previous regression analysis,I selected five industries from the sample and conducted regression analysis on them separately.I judge the information environment of each industry according to the degree of significance,and finally found that the information environment of state-owned manufacturing enterprises is worse than that of private enterprises.I judge the information environment of various industries according to the degree of significance,and finally find that the information environment of state-owned enterprises in manufacturing is worse than that of private enterprises.The analysis results of other industries are not significant,which indicates that their information environment is better to some extent.