Research On The Influence Of Insurance Capital Holding On Enterprise Risk-taking

Since the new era of socialism with Chinese characteristics,China’s insurance industry is moving towards a stage of high-quality development,and the advantages of insurance funds are increasingly obvious.The latest data from the CBRC shows that insurance funds have become the largest institutional investor in public funds and the second largest investor in the stock market.It is particularly important to deeply study the corporate governance role caused by the shareholding behavior of insurance funds.At present,the instability and uncertainty of the international and domestic situation are increasingly prominent.How the listed companies properly take risks and make correct management decisions under the complex and severe external environment is not only related to the sustainable development of micro enterprises,but also tests the resilience of the macro economy.Therefore,an indepth analysis of the impact of insurance fund shareholding on the risk bearing level of listed companies has important theoretical value and practical significance for the regulatory authorities to improve the equity investment norms of insurance institutions and effectively help the development of the real economy.Based on the principal-agent theory,information economics theory,shareholder activism and other theories,using the data of listed companies in China’s A-share market from 2010 to 2021,this paper measures the shareholding behavior of insurance companies by whether insurance assets hold shares and the proportion of shares held,comprehensively measures the level of enterprise risk bearing by the volatility of the total asset yield of listed companies and the annual volatility of the daily stock yield of listed companies As the control variables,the shareholding of other institutional investors is used to build a fixed effect model to study the impact of insurance capital shareholding on the level of risk bearing of listed companies.In order to ensure the robustness of the results,the regression results were tested by means of tool variables,PSM-DID,replacement of explained variables,etc.After that,the paper further discusses the difference of the impact of insurance holdings on the level of enterprise risk taking under the heterogeneous internal and external environment,and analyzes the mechanism of insurance holdings on enterprise risk taking using the intermediary effect model.Through theoretical analysis and empirical research,the following main conclusions are drawn:First,there is a significant difference between the risk bearing level of listed companies with and without insurance holdings,and the higher the proportion of insurance holdings,the lower the level of enterprise risk bearing,indicating that insurance holdings can significantly reduce the risk bearing level of listed companies and play an active role in supervision.Second,after the adoption of instrumental variables,PSM-DID and other methods to alleviate endogenous problems and various robustness tests,the risk mitigation effect of insurance asset holdings is still significant.Furthermore,this paper finds that the corporate governance role of insurance capital shareholding is more prominent in listed companies with higher degree of marketization,better internal control quality and higher agency costs.Mechanism analysis shows that the improvement of information transparency and social responsibility bearing performance of listed companies brought about by insurance capital shareholding has played a part of intermediary role in the relationship between insurance capital shareholding and enterprise risk bearing.Based on the above conclusions,this paper suggests that the regulatory authorities should adhere to the principle of ‘prudent supervision and moderate guidance’ in the process of insurance funds entering the market,further improve the regulatory measures for the use of insurance funds,and make dynamic policy adjustments with the capital market and the operation of insurance companies.Insurance companies should establish the concept of long-term value investment,give full play to their advantages in risk control and continue to improve the ability of financial services to the real economy.Listed companies should strive to improve their own operating capacity and management level,and strengthen the construction of internal governance environment.