The increase in institutional investors has changed the shareholding structure of listed companies. Research on the roles that institutional investor playing in corporate governance has attracted attention. Scholars have conducted a great deal of normative research on this and have also provided empirical evidence. In the early days of the study, scholars studied investors as a whole. During this period, there were mainly three different views on the roles that institutional investors playing in corporate governance. With the development of research, scholars gradually realized that institutional investors have different characteristics, and classified research began. There are mainly four types of classification standard. Classified research provided meaningful exploration for institutional investor research, however even with the same classification, completely opposite conclusions often appear. This paper reviews scholars' research on the roles that institutional investors playing in corporate governance, analyzes the reasons for the opposite conclusion, and makes suggestions for future research.
Almazan, A., Hartzell, J., & Starks, L. (2005). Active Institutional Shareholders and Cost of Monitoring: Evidence from Executive Compensation. Financial Management, 34(4): 5-34.
Boyd, J., & Smith, B. (1996). The Co-evolution of the Real and Financial Sectors in the Growth Process. World Bank Economic Review, 10(2): 371-396.
Brickley, J., Lease, R., & Smith, C. (1988). Ownership Structure and Voting on Anititakeover Amendments. Journal of Financial Economics, (20): 267-292.
Bushee, B. J. (1998). The Influence of Institutional Investors on Myopic R&D Investment Behavior. The Accounting Review, 73(3): 305-333.
Bushee, B. J., Carter, M. E., & Gerakos, J. (2008). Institutional Investor Preferences for Corporate Governance Mechanisms. University of Pennsylvania Working Paper.
Chen, X., Harford, J., & Li, K. (2007). Monitoring: Which Institutions Matter?. Journal of Financial Economics, 86(2): 279-305.
Cheng, S. (2006). An Empirical Study on the Relationship between Institutional Investors' Shareholding and Accounting Earnings Information of Listed Companies. Management World, 129-136.
Coffee, J., & J, R. (1991). liquidity Versus Control The Institutional Investor as Corporate Monitor Columbia Law Review, 91(6): 1277-1368.
David, P., & Kochhar, R. (1996). Barriers to Corporate Governance by Institutional Investors: Implications for Theory and Practice. European Management Journal, 14(5): 457-466.
Davis, E. P. S. B. (2001). Institutional Investors, Cambridge. MIT Press.
Fama, E., & Jensen, M. (1883). Agency Problems and Residual Claims. Journal of Law and Economics, 26(2): 327-349.
Gao, X., & Chen, C. (2017). The Heterogeneity of Institutional Investors and Earnings Management?An Empirical Research from Accrual Earnings Managemant and Real Earnings Management. Journal of Yunnan University of Finance and Economics, 33(03): 124-131.
Gwinyai, U. (2008). Institutional Investor Preferences and Firm Value. Working paper.
Hossain, M. I., San, O. T., Ling, S. M., Said, R. M., & The, B. H. (2022). Nexus of Stakeholder Integration, Environmental Investment, Green Technology Adoption and Environmental Sustainability Practices: Evidence from Bangladesh Textile SMEs. Journal of Social Sciences and Humanities. 30 (1), 253 – 281. https://doi.org/10.47836/pjssh.30.1.14
Jamadar, Y., Ong, T. S., Kamarudin, F., & Abdullah, A. A. (2022). Future firm performance, corporate governance, information asymmetry and insider trading–a systematic literature review using PRISMA. International Journal of Sustainable Economy, 14(3), 309-329.
Jamadar, Y., San, O. T., Abdullah, A. A. and Kamarudin, F. (2021). Earnings and discretionary accruals. Managerial and Decision Economics. Doi: https://doi.org/10.1002/mde.3391
Karpoff, J. M. (2001). http://ssrn.com/abstract=885365, 2001.
Karpoff, J. M., Malatesta, P. H., & Walking, R. A. (1996). Corporate Governance and Shareholder Initiatives: EvidencefromCaLPERS. journal of finance, 51(1): 227-252.
Korczak, P., & Tavakkol, A. (2004). Institutional Investors and the Information Content of Earnings Announcements: The Case of Poland. Economic Systems,28(8): 193-208.
Lin, Y., & Tan, J. (2013). Institutional Investors and Corporate Governance: Literature ?eview and ?esearch Framework. Journal of Accounting and Economics, 27(05):70-80.
Lu, Y., Zhu, Y., & Hu, X. (2012). Institutional Shareholding and Corporate Fraud: Evidence from China. Nankai Business Review, (15):13-23.
Luo, D. (2008). An Analysis of Institutional Investors Participating in Corporate Governance. Journal of Xuzhou Normal University, 121-125.
Nur-Al-Ahad, M., Jamadar, Y., Latiff, A. R. A., Tabash, M. I., & Zaman, A. (2022). Effect of Islamic and Conventional Bonds on Firm's Performance: Evidence from Malaysia. In 2022 International Conference on Sustainable Islamic Business and Finance (SIBF) (pp. 108-116). IEEE.
Potter, G. (1992). Accounting Earnings Announcements, Institutional Investor Concentration and Common Stock Returns. Journal of Accounting Research, (30):146-155.
Pound, J. (1998). Proxy Contest and the Efficiency of Shareholder Oversight. Journal of Financial Economics, (20): 237-265.
Robert, W., Matthias, B., & Roddy, M. (2003). Problem and Limitations of Institutional of Institutional Investor Participation in Corporate Govermance. Corporate Governance, 11(1): 65-70.
Sunil, W. (1996). Public Pension Fund Actvism and Firm Performence. Journal of Financial and Quantitative Analysis, 31(1):1-23.
Tong, W. (2018). Institutional Investors and Corporate Governance: New Trends and Research Prospects. Securities Market Herald, 26-31.
Wahal, S., & McConnell, J. (2000). Do Institutional Investors Exacerbate Managerial Myopia. Journal of Accounting and Economics, 6(3):307-329.
Wang, K., & Xiao, X. (2005). An Empirical Study on Institutional Investors' Shareholding and Related Party Occupation. Nankai Management Review,8(2):27-33.
Wang, X., & Wen, D. (2020). Institutional Investor Heterogeneity, Innovation Input and Corporate Performance:Based on Empirical Data from the GEM Listed Companies. Journal of Audit & Economics, 35(2):98-106.
Yang, H. (2013). The role of institutional investors in corporate governance?A literature review. Friends of Accounting, 68-73.
Yang, H., Wei, D., & Sun, J. (2012). The Institutional Ownership Can Improve The Accounting Information Quality?—— The Difference of Institutional Investors Types. Accounting Research,(9): 16-23.
Yuan, D., Wang, H., & Xiao, J. (2021). Institutional Investor Shareholding Information Transparency and Corporate Social Responsibility. Chongqing Social Sciences,(10):82-107.
Zhu, X., & Fang, Y. (2014). Institutional Investor and Violations of Listed Companies: Differences in the Role of Different Types of Institutional Investors. Finance and Accounting Monthly, 24-29.
