Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

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Institutional Investor and Firm Financialization: Evidence from China

Authors
Chen Li1, *,a, †, Shuai Tang2, *, b, †, Xiaoxiao Zhang3, *, c, †
1School of Accountancy, Queensland University of Technology, Brisbane, QLD 4000, Australia
2School of Finance, Nankai University, Tianjin, 300350, China
3Vancouver School of Economics in Faculty of Arts, University of British Columbia, Vancouver, V771M4, Canada
†

These authors contributed equally.

*Corresponding author. Email: ac99.li@hdr.qut.edu.au
Corresponding Authors
Chen Li, Shuai Tang, Xiaoxiao Zhang
Available Online 15 December 2021.
DOI
10.2991/assehr.k.211209.518How to use a DOI?
Keywords
Institutional investors; Firm financialization; China; Firm size
Abstract

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.

Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
15 December 2021
ISBN
978-94-6239-483-4
ISSN
2352-5428
DOI
10.2991/assehr.k.211209.518How to use a DOI?
Copyright
© 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

risenwbib
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  -