| It is the security investment fund's primary aim to help stock market to develop healthily and stably. Whether the influence of the security investment fund's information explanatory capability (IEC) on the stock market price seeking mechanism (MPSM) can have done that is what this paper tried to make sure. First, we try to study the influence of the investor's IEC on the price and trade volume basing on two model of the investor's precision of interpretation on information (PII) and market trade under a new hypothesis of the investor's sophistication.It finds that investor' IECs and their PIIs affect the market price and trade volume. The stronger the IEC, the higher the precision of interpretations from a public information release, and the more efficiently the market price response with the release, and the lower the market trade will be. Specially, trade volume positively relates to the discrepancy on IECs of buyers and sellers. So, upon a new release, the higher the professional one's IEC, and the larger the discrepancy between the professional and the non-professional one's IEC, or the less the proportion of the professional, the larger the trading volume will be. The higher the investor's IEC is and the more the professional investor exists, the lower the market trade will be too.On the other hand, based on the financial data during 2000-2002 and focusing on the stocks invested heavily (SIH) by the Closed-end Security Investment Fund (CSIF), we explores the influence of the investor's IEC upon the stock market price seeking mechanism. The empirical evidences show that CSIF which be blamed seriously has a powerful ECI, to some extent its ECI enable MPSM to reflect more unexpected financial information and makes a significant response to unexpected real earning, but not to the earning manipulated. So the SIH of CSIF have more efficiency on MPSM. |
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