Research On The Relationship Between Institutional Investors’ Shareholding And Violations Of Food Listed Companies

Food safety has long been a common concern from the ruling class to the people.Since ancient times,with the development of productive forces,the concept of food has developed from the original basic means of living of "food" to a variety of delicious foods,which has greatly enriched the types of food needs of different people.However,this process has also greatly increased the risk of food problems.Previous studies have mainly focused on government supervision and the supervision of the media and the people,focusing on looking at food safety from the perspective of industry governance,It is rare to use mathematical models to calculate the relationship between the occurrence of this result and the change of financial and economic model.Institutional investors are emerging groups in recent decades.Their emergence has played a positive role in the development of listed companies.Most of the existing studies show that institutional investors are more professional.If they participate in corporate governance,they can often have a positive role in promoting the economic benefits of the company.The significance of this paper is to systematically analyze the advantages and disadvantages of the impact of institutional investors’ participation in governance after they participate in the investment in the food industry:the emergence of institutional investors is for the purpose of obtaining economic benefits,The particularity of the food industry requires that it not only follow the market law,but also highlight the word "stability".The influx of too much short-term speculative capital may lead to vicious competition in the food industry,adverse development and an increase in violations.Firstly,this paper analyzes the factors affecting food safety through the literature research method,and expounds the advantages and disadvantages of institutional investors’participation in corporate governance through the existing research of scholars.Finally,this paper selects and screens the data of 1670 listed companies in China’s food industry in guotai’an CSMAR database from 2007 to 2019 as samples,adopts OLS regression model,and takes the company’s violations as the dependent variable,The shareholding ratio of institutional investors is the main explanatory variable,and the company size,the size of the board of directors and the proportion of executive compensation are selected as the control variables for empirical analysis,which verifies the hypothesis that the higher the shareholding ratio of institutional investors will lead to the increase of corporate violations in the special industry of food.At the same time,it also introduces the market-oriented index,the proportion of executive compensation,audit quality and other regulatory variables to further study the impact of corporate internal governance and external conditions on the shareholding ratio of institutional investors.The study found that the large scale of the board of directors,the low shareholding ratio of senior executives,the low degree of marketization,the high government subsidies and the low audit quality will increase the risk of violations by institutional investors in the food industry.Finally,the article puts forward policy suggestions,that is,the government should strengthen the management of the food industry,which ensures the basic people’s livelihood,and can’t let it develop freely in the capital market.Only by managing food safety,reducing violations and giving people a basic sense of survival security,can we stabilize the society and talk about further development.Therefore,first of all,we should improve the access threshold of the food industry and strengthen government supervision and information disclosure.Secondly,we should standardize the development of institutional investors and give them standardized guidance.At the same time,we should encourage them to make long-term and stable investment and participate in governance,so as to ensure that institutional investors play a positive role in the food industry.The innovation of this paper is that by studying the participation of institutional investors in the investment and governance of basic industries,it is concluded that too much institutional investment will lead to the increase of violations in the food industry.This provides a reference for national and industrial governance,that is,basic industries that have a deep impact on the national economy and the people’s livelihood,such as food,energy and water conservancy,still need to strengthen management and access conditions,otherwise too many violations will lead to social instability.Admittedly,because the selected data are subject to conditions and deleted more,it may lead to a small sample size.Secondly,due to the limited level of the author and the unprofessional analysis of some factors,there are inevitably omissions in the article.In the future,the author will pay more attention to the empirical research on the relationship between basic energy and finance and economy by using the knowledge of undergraduate energy and power specialty.