Research On The Influence Of QFII Shareholding On Enterprise Performance

The capital market has always remained semi-open in the process of economic development.In 2002,China promulgated relevant regulations and officially introduced qualified foreign institutional investors for adapting to the development strategy and ensuring the connection with the global economy and finance.After nearly two decades of precipitation and development,QFII has become an important part of China’s capital market which is beneficial to the appropriate introduction of foreign capital and the opening of the capital market.Enterprises need to actively optimize the ownership structure and governance structure to meet the market demand with high-quality development while the capital market is getting more and more open.As the core driving factor of business development,technology has great influences on performance and is one of the concerns of investors.Both theoretically and practically,it is worth studying whether QFII holding can affect corporate performance by adjusting corporate ownership and governance structure,and whether technological innovation can play a catalytic role in the impact of QFII holding on corporate performance as a breakthrough point to improve the intrinsic value and performance level of enterprises.Firstly,the paper reviews the relevant research of China and foreign countries,and then analyzes the impact mechanism between QFII shareholding and corporate performance and puts forward three hypotheses based on theroies about ownership structure,corporate governance and asymmetric information: first,QFII shareholding is positively correlated with corporate performance of listed companies;second,the balance degree of QFII shareholding is positively correlated with corporate performance;third,technological innovation plays a positive intermediary role while QFII shareholding affects enterprise performance,and it is more significant in non-state-owned enterprises.For testing the above hypotheses,this paper chooses the listed companies in China’s A-share market from 2010 to 2020 and uses factor analysis method to analyze the financial performance indicators of the companies to obtain comprehensive performance scores which is been used as the empirical research.Meantime,QFII shareholding ratio and shareholding balance degree are used as explanatory variables and other indicators related to the overall performance of enterprises are used as control variables.Stata15 software was used for multiple regression analysis of sample data and the mediating effect test method adopted by Wen,Ye and Qian was used for reference.Sobel test and Bootstrap method were used to test the mediating effect of technological innovation in this paper.The results indicate that there is a significant correlation between QFII’s shareholding ratio and performance in listed enterprises,which is the same as the shareholding balance.Meanwhile,there is an obvious intermediary effect in the process of technological innovation output in non-state and high technology enterprises.We select QFII shareholding data with a lag of one period to test whether the results is robust and ensure the reliability of the empirical results.Above test shows that the results gained by each regression analysis were still stable under the explanatory variables with a lag of one period.In view of the conclusions,we argue that the government should actively introduce and implement the QFII system by reducing the access standards and increasing the duration of QFII holding enterprise stocks and advance the support for local high-tech enterprises from various aspects such as capital and policy.Enterprises should optimize the equity institutions and governance structure and enhance innovation consciousness to guarantee the output of technological innovation,regularly disclose relevant information of the enterprise,attract more QFIIs to hold stocks,supervise and participate in corporate governance to improve overall performance.The research provides an important reference for the country to implement the QFII system and to introduce foreign shareholding,optimize internal structure,enhance property rights awareness and improve performance level of listed companies.However,due to the incompleteness of datas and statistics,the selection and measurement of indicators are relatively simple.With the improvement of the system and the update of data,more detailed index division can be carried out to take into account the multi-directional development of enterprises and make more adequate supplements to existing research.