Ultimate Owner Type, the Separation Between Ownership and Control and Institutional Ownership

摘要

The significant separation between ownership and control will have an effect on corporate valuation, which may have an effect on investors' decisions. This paper empirically investigates the separation between ownership and control for listed companies in China and it's an effect on institutional ownership. It is found that high level of cash-flow rights and small separation between ownership and control has a positive effect on institutional ownership; mainly refer to security investment funds. State ownership mitigates this relation. The result proves that institutional investors play a positive role in investor protection as a whole, but there has a significant difference among different type of institutional investors.