Institutional Investor and Firm Financialization: Evidence from China
- 10.2991/assehr.k.211209.518How to use a DOI?
- Institutional investors; Firm financialization; China; Firm size
This paper explores the role of institutional investors from a perspective of firm financialization by selecting listed companies in the Shanghai Stock Exchange and Shenzhen Stock Exchange as a sample for the study. We find that institutional investor ownership can reduce firm financialization. This result still holds after a series of robustness checks, such as the firm-year fixed effects model and additional control variables in the regression model. Additionally, the effect of institutional investors on financialization is more pronounced for firms with large size, which indicates that better corporate governance can provide support to the monitoring role of institutional investors. In all, our findings support strong insight on how regulators rationally lead institutional investors to adopt appropriate investment strategies and orient the finance industry to support the development of the real economy, consequently driving the revolution of the finance industry.
- © 2021 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Chen Li AU - Shuai Tang AU - Xiaoxiao Zhang PY - 2021 DA - 2021/12/15 TI - Institutional Investor and Firm Financialization: Evidence from China BT - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021) PB - Atlantis Press SP - 3172 EP - 3181 SN - 2352-5428 UR - https://doi.org/10.2991/assehr.k.211209.518 DO - 10.2991/assehr.k.211209.518 ID - Li2021 ER -