Common Institutional Ownership and Enterprise Productivity

10.6148/IJITAS.202403_16(1).0004

Yanbing Li；Jiaao Zhang

Common institution ownership ； Enterprise productivity ； Management supervision ； Enterprise development

International Journal of Intelligent Technologies and Applied Statistics

16卷1期（2024 / 03 / 01）

67 - 81

英文

Purpose: This paper enriches the study of common institutional ownership from the perspective of firm productivity, and also provides further norms and guidance on firm oversight at the regulatory level. Design/methodology/approach: The research analyzes data from Chinese Shanghai and Shenzhen A-share listed companies spanning from 2010 to 2021, sourced from the CSMAR database. Common institutional ownership is defined as the sum of shareholdings by institutional investors in multiple companies within the same industry. The study employs rigorous statistical methods, including regression analysis, propensity score matching, and mediation effect tests, to examine the relationship between common institutional ownership and firm productivity. Findings: The study shows a positive and significant correlation between common institutional ownership and firm productivity in the Chinese market. This suggests that joint ownership by institutional investors enhances firms' productivity. Practical implications: This study highlights the practical implications of common institutional ownership for policymakers and market regulators. The positive correlation between common institutional ownership and firm productivity suggests that this model should be reasonably applied to enhance the regulatory framework in China's capital market. Originality/value: By addressing the research gap and highlighting the significance of common institutional ownership in the Chinese market, this study improves our understanding of corporate governance mechanisms and provides valuable inputs for future research and regulatory practices.