Financial crisis and the split share structure reform will have some impact on the investment behavior of investors in our country.Along with development of institutional investors,its scale unceasingly expands.It plays a more important role in the securities market.Information disclosure of listed companies is the basis of the principle stock market open.It has become the focus of attention of the theory and practice.But institutional investors are able to promote the quality of information disclosure of listed companies have been inconclusive.The paper discusses the relationship of institutional investors and information disclosure of listed companies from the theory and empirical study.It proves that institutional investors can actually improve the quality of listed company information disclosure.