A Study on the Impact of Institutional Investor Site Visits on Corporate Governance Performance: Empirical Evidence from GEM-Listed Firms

Abstract

As important participants in the capital market, institutional investors influence the governance performance of listed companies through different modes of engagement. Corporate governance performance is mainly reflected in information disclosure quality and agency costs. From the perspective of institutional investors, this paper selects data on 2,943 GEM-listed firms on the Shenzhen Stock Exchange from 2013 to 2021 and uses for regression analysis. The results show that both the frequency of institutional investor site visits and the number of institutions participating in site visits are significantly positively associated with the quality of corporate information disclosure, and this positive effect is more pronounced in non-state-owned enterprises. At the same time, both the frequency of site visits and the number of participating institutions significantly suppress the two types of agency costs, and this inhibitory effect is more significant in firms with lower ownership concentration.