Common Institutional Investors and the Derivation of Corporate Financial Risk
In the context of the increasing trend of corporate financial risk derivatization,it is inconclusive whether com-mon institutional investors,as an economic association among firms in the capital market,can play a positive role as a factor of production in shareholding firms.This paper systematically examines the impact of common institutional investors on the derivatization of corporate financial risk by proposing the collaborative governance hypothesis and the private-inter-est collusion hypothesis using a sample of Chinese A-share listed firms in Shanghai and Shenzhen from 2008 to 2021.The empirical results show that common institutional investors has a significant inhibitory effect on the derivation of corpo-rate financial risk,which supports the collaborative governance hypothesis.The mechanism of action test finds that com-mon institutional investors inhibits the derivation of financial risk through agency conflict mitigation.Heterogeneity analy-sis shows that the level of marketization,environmental uncertainty,and CEO ownership all have heterogeneous effects on the effect of common institutional investors on the derivation of corporate financial risk.
common institutional investorsthe derivation of corporate financial riskagency costs
万方数据
维普
