Author(s)

Jiacai Xiong

School of Accountancy, Jiangxi University of Finance and Economics, Nanchang, China.

The China stock market and institutional investors have experienced an extraordinary development during the past decades. Therefore, it is important to examine the real effects of institutional investors. This paper investigates relationship between institutional investors and firm value using Chinese listed companies from 2008 to 2014. This paper finds that institutional investors help improve firm value. Further analysis shows that institutional investors improve firm value by increasing cash dividend payout. The empirical results of this paper show that institutional investors help improve corporate governance and reduce agency costs.

Institutional Investors, Firm Value, Cash Dividend, Corporate Governance

Xiong, J. (2016) Institutional Investors, Dividend Policy and Firm Value—Evidence from China. Open Journal of Social Sciences, 4, 120-126. doi: 10.4236/jss.2016.48015.