Research On The Timing Of Investing By New Investments Of Institutional Investors Based On Cox Regression Model

In financial markets, institutional investors are seen as rational professional investors because of professional personnel, strong financial strength and rich investment experience. But as a matter of fact, institutional investors are not fully rational from the perspective of behavioral finance. There are also irrational behaviors such as local preference, herding, short-sighted behavior as well as the disposition effect.With the restart of IPO, "playing the new" is gradually heating up in the markets. As major investors, institutional investors’ participation in it will largely affect the healthy and stable development of the market. So based on the behavioral preferences and the theory of value investment, this paper selects financial status variables of IPO company and fund company, variables related to market sentiment, distance factors to reflect the distance between the IPO company and the fund company, at the same time introduce related variables to represent the performance of new shares on the first day of IPO, to build Cox regression model which use the holding period on new shares as explained variables, then make use of the software SAS to calculate the results. In general, this paper studies on institutional investors about their withdrawal timing to examine whether institutional investors in the China Mainland market have investment preferences, and what kinds of factors can affect their holding period on new stocks.As the paper found out, 1.There exists home bias in institutional investors, i.e. institutional investors tend to invest in the stocks that are close to them and hold them for a long term. 2. Institutional investors sell shares mostly based on their own financial situation and investment climate in the market instead of the financial indicators of listed companies. 3. Compared to the funds with lower net value, those with high net value will pay extra attention to their own profit to decide whether to withdraw, and their average return rate is higher.