Research On The Impact Of Common Institutional Ownership On Corporate Risk-takin

Enterprise risk taking reflects the uncertainty that enterprises can bear when choosing high-yield investment strategies.High risk taking is beneficial to shareholders and enterprises to maximize their value.Improving the level of enterprise risk taking is an inevitable requirement for high-quality economic development in China,and improving the level of enterprise risk taking will be affected by various factors at both macro and micro levels.In addition,with the increase in institutional investor ownership and investment institution mergers and acquisitions,it is increasingly common for institutional investors to hold equity in multiple companies in the same industry.This model is known as joint institutional ownership.The existence of joint institutional ownership has an important impact on corporate governance and corporate decision-making.Existing research indicates that joint institutional ownership may have synergistic governance effects on enterprises,it is also possible to have a collusive fraud effect,which may have a beneficial or adverse impact on the enterprise’s risk taking.Based on the data of A-share listed companies in Shanghai and Shenzhen from2007 to 2021,this article analyzes the impact of joint institutional ownership on corporate risk taking and its mechanism.The empirical results show that:(1)Joint institutional ownership can effectively play a synergistic governance effect to promote enterprise risk taking,and after a series of robustness tests,the conclusion is still valid.(2)The results of the heterogeneity test indicate that under the circumstances where senior executives do not have a financial background,CEOs do not have dual roles in one,major shareholders do not have equity pledges,the stock market is a bear market,and industry competition is high,the promotion effect of joint institutional ownership on enterprise risk taking is relatively more significant.(3)The intermediary effect of financing constraints,agency costs,and strategic differentiation exists,that is,the ownership of common institutions improves the level of risk taking by easing financing constraints,reducing agency costs,and enhancing the degree of strategic differentiation of enterprises.In addition,through a case study of Changdian Technology,this article further confirms the promoting effect of joint institutional ownership on enterprise risk taking.