Research On The Impact Of Kangjia Group's Institutional Investors' Participation In Corporate Governance

In the 1990 s,institutional investors emerged in China's capital market.Our government and other relevant departments formulated a series of laws and regulations to promote institutional investors to enter the market.As a result,institutional investors have made considerable progress and achieved significant growth in terms of types,quantities and scales.So far,institutional investors have become the backbone of China's capital market.In 2016,the People's Bank of China reported that the rapid development of institutional investors has become the main part of China's financial market and played a vital role.In recent years,the attitude of institutional investors to participate in corporate governance has also changed greatly.With the strength of institutional investors,the improvement of the legal system of investor protection and the enrichment of ways to participate in governance,institutional investors have gradually developed from "voting by foot" to "voting by hand" to show their governance willingness and governance ability.There are also many opportunities in China's market.The case of institutional investors participating in corporate governance.Academia has also made various studies on institutional investors' participation in corporate governance,but there is no consensus on the impact of institutional investors' participation in corporate governance.Most of the existing literature carries out empirical research,so this paper takes the controversy of control rights of Kangjia Group as a case to study the impact of institutional investors' participation in corporate governance,hoping to enrich the existing theory through case studies and provide experience for institutional investors' participation in corporate governance in China.Based on the above research background,this paper uses case study method to analyze the impact of institutional investors' participation in corporate governance.The main work is as follows: Firstly,this paper combs the relevant literature in the field of institutional investors,and then elaborates the principal-agent theory,information asymmetry theory,stakeholder co-governance theory and equity structure theory.Institutional investors' participation in corporate governance has laid a theoretical foundation.Secondly,this paper takes the event of Kangjia Group's institutional investors participating in the control right contest as the object of case study,and introduces the case events according to the time sequence.At the same time,it introduces the tripartite camp of participating in the control right contest and combs out the behavior of institutional investors.Finally,the case analysis of this paper is mainly carried out from three aspects: ways,motivation and impact of institutional investors' participation in corporate governance.It is found that the main ways for institutional investors to participate in corporate governance in case companies are to implement voting rights,submit shareholder proposals and carry out joint actions;the motivation for institutional investors to participate in corporate governance is that institutional investors are dissatisfied with the company's operating status,are in a passive position in the board of directors,and their rights and interests are infringed;the impact of participation in corporate governance is shown as being favored by the external market and stocks during the event period.After the event,it was shown that the external market was not optimistic about the return of controlling shareholders,the stock price of the company was difficult to recover in the short term,and the situation of the company was better under the control of controlling shareholders.Through the case study,this paper mainly draws the following three conclusions: institutional investors are in a passive position in corporate governance,institutional investors have "short-sighted",institutional investors have limited ability to participate in governance.And the corresponding suggestions are put forward: optimizing the internal governance structure of the company,guiding institutional investors to change their investment concepts,and enhancing the governance ability of institutional investors.It is hoped that this paper can provide experience for Chinese institutional investors to effectively participate in corporate governance and play their role,and provide reference for listed companies to improve their internal governance structure and improve their governance level.