Do Institutional Investors’ Corporate Visits Affect Corporate Major Decisions?

Institutional investors,as important players in the market,can influence all aspects of the company through information channel and governance channel.This paper measures the company’s major decisions from the perspective of equity refinancing decisions,and studies the impact of institutional investors’ corporate visits on major decisions made by listed companies to fill the gap of institutional investors’ corporate visits on economic consequences in the company’s major decision-making areas based on the institutional investors’ corporate visits data of listed companies on Shenzhen and Shanghai Stock Exchange from 2013 to 2020.The study found that institutional investors’ corporate visits have a significant role in promoting equity refinancing decisions of listed companies.Considering the company’s own capital market experience,institutional investors’ corporate visits have a stronger role in promoting it when there is no relevant major decision-making experience.Considering monetary policy,institutional investors’ corporate visits have a stronger role in promoting when monetary policy is looser.Further categorizing the types of institutional investors into six categories found that different types of institutional investors’ corporate visits can facilitate major decision-making.The regression results of measuring major decisions with equity incentive decisions also support the promoting role of institutional investors’ corporate visits,the regulatory role of capital market experience and monetary policy.Distinguishing the proportion of institutional shareholding,brokerage company’s corporate visits play a significant role in promoting major decision-making regardless of the size of the brokerage company’s shareholding;fund company’s corporate visits only have significant impact on making major decisions when the fund’s shareholding ratio is small.Distinguish between the companies listed on the Shanghai and Shenzhen Stock Exchange,the institutional investors’ corporate visits of the companies on the Shenzhen Stock Exchange make an important impact rather than the other stock exchange.The promotion effect of institutional investors’ corporate visits is significant regardless of the nature of the property rights of the enterprises.In conclusion,institutional investors influence listed companies to make capital market-related decisions through corporate visits.This paper has practical significance for the regulatory authorities to encourage institutional investors and companies to strengthen interaction,and to promote institutional investors’ corporate visits to play a role in governance.