In this paper, we first use 2000—2011 A share listed companies in Shanghai and Shenzhen Stock Exchange as a sample based on the heterogeneity of the enterprise itself and the market perspective, and then discuss the impact of institutional investors on accounting conservatism. The results show that institutional investors staking leads to a decline in accounting conservatism in state owned enterprises or companies with good growth, this negative relationship is strengthened and the degree of market oriented enterprises in which areas makes no difference for institutional investors who hold shares and accounting conservatism. In addition, compared to “pressure resisting” institutional investors, “pressure sensitive” institutional investor ownership percentage increases will lead to a faster decline in accounting conservatism.