Institutional Investors and Corporate Governance:Literature Review and Research Framework

The relationship between institutional investors and corporate governance is an important issue which has attracted the attention from both the academia and the industry. By strictly dividing institutional investors into different types,international studies present detailed discussions on governance motivation,governance mechanism and governance consequence of institutional investors. In contrast,domestic studies mainly focus on governance consequence,and lack in-depth analysis on investor types and their governance motivation and mechanism. Based on the above analyses and reviews of both the international and domestic studies,this paper establishes a research framework of institutional investor participation in corporate governance.