The Research On The Stock Market Volatility Influenced By Institutional Investor

In order to improve the structure of China capital market investors, promote the healthy development of capital market, Since2000, the China securities regulatory commission put forward "extraordinary development of institutional investors". With the support of the policy, institutional investors got rapid development, and gradually become the major component of market. With the rapid development and growth of institutional investors, some problems, such as fund shady and Stock price manipulation gradually exposed, which makes institutional investors’ function of the stability of the securities market is doubted by the parties, whether institutional investors can stable market? This problem becomes the focus of scholars’ study, and the debate on the theoretical analysis and empirical analysis did not make a definite conclusion.The reason of existing research conclusion is not unified, in addition to different study samples and measurement analysis method and so on, probably existing research ignore some important factors. Institutional investors as a member of many investors, the ultimate goal of their investment behavior is to get profits, and the cash dividend policy of listed companies, will has important effects on its revenue pattern. Therefore, this paper considered special institutional background in China, chose the cash dividend policy of listed company as the pointcut, analyzed the stock market volatility by institutional investors under the different cash dividend policy.This paper chose A shares data in Shanghai and Shenzhen from2007to2012as the research sample, based on two multiple regression models to have a empirical test on the influence of stock market by volatility under different dividend policy. The results showed that when the listed company passes its cash dividend, institutional investors holding stock intensified market volatility, when the listed company pay cash dividend, institutional investors holding helps reduce volatility in the stock market. Possible reason is that when no cash dividends of listed companies, institutional investors holding the purpose is short-term speculation, intensify the volatility of the market and when listed companies pay cash dividend, institutional investors holding the purpose is long-term investment, less speculative trading, which reduces the volatility of the market. On this basis, this paper did the empirical test and analysed if five types of institutional investors in the market play a role of a stable marketThe research results indicate that cash dividend behavior of listed company, is conducive to establishing a healthy institutional investors investment pattern, so as to make the institutional investors can effectively play the role of a stable market. Under the "mandatory cash dividend policy, the management has been advocated by" vigorously develop institutional investors "have the desired effect. At the same time, also remind regulatory authorities, with the development of the scale of institutional investors, also need to pay attention to the establishment and perfection of the form a complete set of rules and regulations.