Research On The Influence That Stepping Empty Effects On The Behavior Of Institutional Investors

Originally, institutional investors are the leading force in the stock market. However, in the Chinese stock market, the stepping empty of institutional investors is a universal phenomenon, not only the frequency of institutional investors’ stepping empty is much, but also the number of institutional investors. With the gradual improvement of our financial market and the securities market structure, institutional investors bear the historical mission of guiding rational investment, restructuring of the financial structure, and promoting the reform and innovation of economic institution, as well as promoting sustainable development of China’s economy. All the factors, such as the investment behaviors of institution investors, investment philosophy, investment style and management level, they all play a decisive role on the trend of the stock market, and the consummation of market’s structure and institution of the entire market. So, for the healthy development of the institutional investors and the stock market, the research of the effects of stepping empty for the institutional investors’ behavior has great theoretical value and practical significance.The article first analysis the reasons of the stepping empty for the institutional investors, such as the policy changes, noise trading, the listed companies disclose their information behind time and the institutional investors’ own cognitive biases, these factors can explain why the institutional investors will step empty well. Whereafter, this article presents a theoretical analysis of the effects of stepping empty for institutional investors’ behavior, including some basic theoretical analysis of the behavioral finance and some theoretical analysis of the institutional investors’ herding behavior, positive feedback behavior and reverse behavior after they step empty. On this basis, the author selected the sample of stocks within two intervals:one is in a bull market, and the other is in a bear market. Then use the data model and the dynamic range of contrast to verify that the institutional investors’ investment behavior will present apparent herding behavior, positive feedback behavior, and also validate the herding behavior and the positive feedback behavior is much stronger in bull market than in bear market, and the reverse behavior only exists in the bull market.Finally, based on the article’s conclusions, In order to reduce the influence of institutional investors stepping empty, the authors consider from the regulators, listed companies and institutional investors, the author propose some targeted measures and suggestions, such as weakening the effect of policy market, develop a diversified institutional investor, listed companies do the information disclosure obligations well and build a more reasonable performance evaluation and commission incentive system for the institutional investor, by all these to promote the healthy development of the institutional investors and the Chinese stock market.