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An Analysis On The Impact Of Institutional Investors On The Efficiency Of Capital Market

Posted on:2004-08-04Degree:DoctorType:Dissertation
Country:ChinaCandidate:J W LiuFull Text:PDF
GTID:1116360092497384Subject:International finance
Abstract/Summary:PDF Full Text Request
The rapid growth of institutional investors has been an important changing character in the global financial system in recent ten more years. It makes the traditional financial system regarding banks as inter-medium to have a deep variance, and the institutional investors oriented capital market has the possible tendency of replacing the core status of bank system, which has also brought on the academical debate about the future position of institutional investors and banks. Undoubtedly, institutional i nvestors are now changing the structure and performance of financial market, and with the effect of economic globalization, such change is not limited to some developed countries or regions, but accepted and copied quickly by some emerging markets as an "advanced system". But the change is so rapid for people to know its actual use, thus one can't believe its permanence and authenticity so easily.Although that Chinese capital market has been founded only a little more than 10 years, it has developed quickly and become an important part in the national economic life. In recent years, what has catches people's eye in security market is that with the model of rapid growth of institutional investor in developed countries, China Securities Regulatory Commission has conceived the "to develop institutional investors beyond conventionality" strategy, led by such idea, the institutionalinvestors represented by security investment funds has rapidly developed. From the view of the security investment funds influence on security market, it has not been well done, and.the investment funds are not being recognized by the market as imagined before. What's more, it also indicates that the policy to develop institutional investors does not match the internal requirement of the current market, and there is probably some misunderstanding on the effect of institutional investors in China. Therefore, it is indeed necessary to develop the study on institutional investors' impact on capital market, and this dissertation came out just based on such a thought, which focuses on analyzing the real impact of institutional investors on capital market efficiency, and makes some helpful exploration for the healthful development of Chinese capital market. This dissertation comprises 8 chapters.Chapter 1 introduces the background, research scope and object of the dissertation and introduces its framework, instructs some important concepts and assumptions. In addition, the research method is also stated in this part, including the connection of theory study and demonstration analysis, qualitative and quantitative analysis, and logic reasoning and induction analysis, all of which will make a strict and integrated logic system for the dissertation.Chapter 2 presents the theory of capital market efficiency. Based on the definitionsof efficiency, economic efficiency and capital market efficiency ineconomics, it discusses the new definition of efficiency in new system economics, andinterviews and analyzes the EMH and CAPM of traditional capital market, lastly, based on such analysis, it tries to construct the theory framework of Chinese capital market efficiency, and points out that we should review Chinese capital market efficiency problem from micro- and macro-side.Chapter 3 analyzes the economic and legal characters of institutional investors and probes into the categories and the respective features of institutional investors. In detail, it points out that the way of institutional investors is a kind of collective investment, a nd i s a d eed r elationship from t he v iew p oint o f 1 aw, t he i nstitutional investors have two special grades contractual relationship, and the problem of commission and agent is the key factor for understanding the behavior.Chapter 4 analyzes the effect of institutional investors behavior on market security price and the market internal running system from the angle of theory and demonstration. It points out that under the circumstances of imperfect system and absence of supervision for attorn...
Keywords/Search Tags:capital market, institutional investors, efficiency, behaviour, institution
PDF Full Text Request
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