Research On The Consistency Of Institutional Investors Site Visit And Investment Behavior Based On Site Visit Text Big Data

In 2000,China Securities Regulatory Commission proposed to develop institutional investors in an unconventional and creative way,and institutional investors gradually became the main force of China’s securities market.From 2015 to 2016,the implementation of the stock registration system enabled institutional investors to have more options,which forced institutional investors to be more rational in the investor process and rationally make and execute investment decisions.With the rapid development of institutional investors in China’s securities market,their dominant position in China’s securities market has become more and more obvious,and the research and investment behavior of institutional investors have become a hot topic of scholars’ attention.However,institutional investors are composed of different executors.When they acquire and judge research information and conduct investment behavior in the process of field research,they are affected by uneven knowledge theories,ideological values and diverse cultural concepts.When institutional investors are faced with diversified cultures and complex economic environment,these factors will affect their ideology to a certain extent,thus affecting their cognition and investment behavior decisions.Therefore,in-depth research on institutional investors’ site visit and investment behavior can enhance the prevention of irrational behaviors of institutional investors,improve financial literacy,promote scientific supervision,and ensure the stability of financial markets.Then,the research on the rational behavior of institutional investors is helpful to the understanding of the rational behavior of institutional investors,especially the research based on the influence of cultural concepts on the rational behavior of institutional investors appears to have more theoretical value and practical significance.Based on this,this research mainly discusses these three questions: Do institutional investors make investment decisions based on site visit information? What are the factors that influence institutional investors’ investment decisions based on site visit information? And what is the impact of institutional investors’ investment decisions based on site visit information on the governance of listed companies? In order to answer the above questions,this research is based on institutional investors site visit information text data,construct the information content measurement framework,study the consistent behavior of institutional investors access to site visit information and investment decision-making,as well as the cultural concept has effect on the consistent behavior,and the impact of the behavior on earnings management of listed companies.The main conclusions are as follows:First,the site visit information obtained by institutional investors is valuable.Employing the method of predicting stock returns based on the site visit information obtained by institutional investors,it is found that the site visit information obtained by institutional investors can significantly predict the stock returns in the next month,both in and out of the sample,and it has more advantages and better predictive power than economic variables;and this site visit information can produce good economic value for investors.Under the constraints of different forecast windows,risk aversion coefficients,and different asset allocation stock weights,the site visit information has greater economic value.This shows that the information obtained by institutional investors in the site visit is valuable.Second,institutional investors can make investment decisions based on site visit information and achieve the consistent behavior of institutional investors accquireing site visit information and investment decision-making.After institutional investors participate in the site visit,they can affect the changes in the shareholding ratio of their managed investment portfolio to the visited listed company;when the institutional investors participating in the site visit obtain more pessimistic(optimistic)information,the institutional investors will decrease(increase)shareholding ratio,that is,institutional investors can make investment decisions based on the acquired site visit information,so as to achieve consistency between the acquisition of site visit information and investment behavior.Third,institutional investors’ own characteristics and cultural atmosphere are important factors that affect the consistent behavior of institutional investors accquiring site visit information and investment decision-making.The cultural atmosphere of the place of registration,the governance level of institutional investors,the growth rate of the managed investment portfolio,and the nature of ownership can affect their behavior in making investment decisions based on site visit information,the higher the governance level of institutional investors,the better the management of the investment portfolio,the more consistent the acquisition of research information and investment behavior can be achieved when the actual controller is a Chinese-funded institution and the institutional investors are deeply affected by Confucion culture.Fourth,the consistent behavior of institutional investors accquiring site visit information and investment decision-making can inhibit the earnings management of listed companies.the consistent behavior of institutional investors accquiring site visit information and investment decision-making is a favorable external supervision mechanism for listed companies;at the same time,the consistent behavior of institutional investors accquiring site visit information and investment decision-making is critical to non-state-owned listed companies,smaller listed companies,better information environment and poor legal environment listeted companies.Through the research,it can be a deeper understanding of the investment behavior of institutions after site visit,especially the investment decision-making behavior based on the site visit information,and further understand the guiding role of Confucian culture on the site visit and investment behavior of institutional investors.In order to improve Chinese institutional investment,it provides empirical data on the role of institutional investors in their own quality,giving a full play to the professional,technical,and information advantages of institutional investors,and promoting institutional investors to stabilize the market.