Research on the Impact of Institutional Investors’ Shareholding on Firm Value—An Empirical Study Based on the Heterogeneity Perspective of Institutional Investors-OA Journal of Economy and Management-Pubscie

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Research on the Impact of Institutional Investors’ Shareholding on Firm Value—An Empirical Study Based on the Heterogeneity Perspective of Institutional Investors

DOI: 10.26855/oajem.2022.09.003
Year, volume (issue): 2022, 1(2)
pp. 80-88
Published in: OA Journal of Economy and Management
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Gang Wang, Chunlin Lu

Institutional investor shareholding ratio, Pressure-sensitive investors, Pressure-insensitive investors, Enterprise value

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Abstract

In recent decades, with the development and improvement of China’s capital market, institutional investors have played an increasingly important role in China’s stock market. The successful completion of the share-trading reform has provided many chances for institutional investors to give full play to their professional advantages to participate in corporate governance. Using a fixed-effects model, this paper takes Chinese listed companies from 2012 to 2021 as a sample to empirically study the relationship between institutional investors’ shareholding ratio and company value. Also, in this paper, institutional investors are divided into pressure-sensitive institutional investors and pressure-insensitive institutional investors, which are used to further examine the impact of institutional investor heterogeneity on firm value. The research results show that the shareholding ratio of institutional investors has a significant positive impact on company value. Compared with pressure-sensitive institutional investors, the shareholding ratio of pressure-insensitive institutional investors has a stronger positive impact on firm value. The results of the robustness test remain robust.

Keywords: Institutional investor shareholding ratio, Pressure-sensitive investors, Pressure-insensitive investors, Enterprise value

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