Literature Reviews of Institutional Investor Holding Shares'Influence on Corporate Governance

The study finds institutional investors can inhibit blockholder control and the internal control on manipulation of earnings management,they can also optimize the relationship between managing directors and the structure of the board of directors as well as different types of shareholders.On the other hand, when the institutional investor have low proportions of sharers in a corporation,they often sell more stocks to take immediate profits,and thus play a negative role in corporate governance.