The Empirical Research On Stock-holding Influencing Factors Of Institutional Investors

With the development of the securities market, institutional investors graduallydeveloped, which are becoming more and more important. This research analyzes therelationship of the institutional shares proportion and the stock characteristics（size oflisted companies, asset-liability ratio, earnings per share, net operating cash flow per share,the quality of information disclosure, the controlling shareholder, Beta, price per bookvalue and turnover rate）to test whether the institutional investors have shareholdingpreferences, whether they follow the prudent duty.The main results are summarized as follows：(1)The chinese institutional investorsbelieve that the companys’ financial information, corporate governance, and transactioninformation are very important when they make decisions. The shareholding percentage ofinstitutional investors is proportional to the listed company’s size, profitability, the qualityof information disclosure and investment potential. Besides, the institutional investors aremore inclined to invest in state-owned enterprises.(2) Even in the bull market theinstitutional investors are still in favor of shares with lower-turnover rate. This shows thatthe chinese institutional investors’ risk awareness of price pressures is weak when lightenup. The institutional investors do not follow the prudent principle.(3)The institutionalinvestors care about the companies’ profit but ignore the operational cash flow which cantest the quality of the profit. It means that the institmional investors are not prudentenough, they do not care about the cash creation ability of the listed compames.The innovations of this research are as follows:(1)The sample includes not only thesecurities investment funds, but also the the QFII, insurance companies, social securityfunds, trust companies, general corporate and other institutional investors. The analysisbased on a wide range of sample sizes provide more comprehensive evidences for thestudy.(2)In addition, the research analyzes whether the quality of information disclosureinfluence the institutional investors’ holding preferences.(3)Considering chinesecompanies’ special ownership structure, this paper introduces the factor of the controllingshareholder to determine whether the institutional investors to treat the state-ownedenterprises and non-state-owned enterprises differently.