Research On The Relationship Between Institutional Investor Shareholding And Enterprise Industrial Investment

Industrial investment plays an important role in the daily operation of enterprises and plays a key role in the improvement of sustainable development ability and competitiveness of enterprises.Industrial investment of enterprises is not only be connected with their own market competitiveness,but also closely related to the national economy and people’s livelihood and social production capacity.Therefore,our country should pay attention to the important role of industrial investment in economic development.Encourage capable enterprises to raise their industrial investment level.In an imperfect capital market,it is difficult for enterprises to obtain sufficient investment information to make appropriate investment decisions.As the shareholders and external supervisors of the company,institutional investors have the ability to collect,analyze and provide the information required for corporate investment,and also have the incentive to supervise the investment behavior of the management to effect the investment decision of the company.Therefore,based on the principal-agent theory,signal transmission theory,tournament theory and other basic theories,this paper discusses the relationship between the shareholding of heterogeneous institutional investors and the level of enterprise industrial investment,puts forward relevant hypotheses,and expands the research on the influencing factors of enterprise industrial investment level.In the light of empirical research,this paper selects A-share listed companies from 2012 to 2021 as research samples to empirically test the impact of institutional investors’ shareholding on the level of industrial investment of enterprises and be involved hypotheses in the impact of different types of institutional investors’ shareholding on the level of industrial investment of enterprises.This paper explores the differences in the impact of institutional investors’ shareholding on the level of industrial investment in enterprises of different nature,and further introduces financing constraints,accounting conservatism and executive pay gap to explore the effect path of institutional investors’ shareholding on the level of industrial investment in enterprises from the perspectives of bailout,supervision and incentive.We also explore the differences in the mediating effects of financial constraints,accounting conservatism and executive pay gap in firms with different ownership natures.The empirical results show that: 1)institutional investors’ shareholding can improve the industrial investment level of enterprises.Compared with pressure-sensitive institutional investors,pressure-resistant institutional investors’ shareholding has a more significant effect on improving the industrial investment level of enterprises;(2)In non-state-owned enterprises,the positive relationship between institutional investors’ shareholding ratio and enterprise industrial investment level is more significant;(3)Through the mechanism test,we find that financial constraints,accounting conservatism and executive pay gap play a partial mediating role,and the mediating role of the three is more significant in non-state-owned enterprises.Starting from the micro level,this paper explores the influence of institutional investors’ shareholding on the level of enterprise industrial investment,as well as the role of financing constraints,accounting conservatism and executive pay gap in it,which enriches the research on the influencing factors of enterprise industrial investment level and supplements the research framework of institutional investors’ shareholding and enterprise industrial investment.It provides relevant reference basis for enterprises and relevant departments to improve the ownership structure.