A Study Of The Regional Characteristics Preference On The Institutional Investor Holding Decision And The Adjustment Of The Accounting Information Quality

From the perspective of Markowitz's portfolio theory, the investment diversification can reduce risk without the reduction in profit. The investment diversification includes the diversification in object, time period, region and duration, in which the diversification in region suggests the investor to buy stock from different regions in domestic market or from different countries in the International financial market in order to avoid the investment losses resulted from the political and economic turmoil in a specific region. However, in the real stock market, researchers in the world find that the investor usually fails to carry out the principles of diversification in region. The investor prefers to buy the stock from the economically developed region near them, which represents a gap that is worthy of attention and investigation. Institutional investors'effective improvement in the management level and performance of listed companies plays an important role in the development of the listed company; and the balanced development of listed companies has a huge influence in the promotion of the regional economic development in our country. Therefore, this thesis starts from the institutional investors in our country to discuss whether the institutional investor of the listed companies in our country has a regional preference when making decision of holding stock; and whether the accounting information quality will influence this preference.By reviewing the domestic and foreign research results, this thesis takes the regional theory, principal-agent theory, information asymmetry theory, transaction cost theory and information delivery theory as basis to analyze the regional characteristics of listed company distribution differences and the institutional investors'preferences of the decision of holding stock. It pays special attention to the phenomenon and the reason for the institutional investors'regional preference as well as the influence of the accounting information quality on the decision of holding stock. With this basis, this thesis takes the data of listed a-share companies in the stock exchange main board in our country from 2009 to 2013 as the research sample to explore whether the regional characteristics of the listed companies in our country will the institutional investor of the listed companies in our country has a regional preference when making decision of holding stock. Further research will be carried out in the analysis whether the quality of accounting information of listed companies will influence this preference.The research results show obvious characteristics, which are embodied in two aspects, of the regional preference when the institutional investor of the listed companies in our country are making decisions of holding stock. Firstly, the institutional investors prefer the listed companies near them, which means the nearer, the higher percentage of holding stock. Secondly, the institutional investors prefer listed companies in the eastern regions, which means compared with the listed companies in the central and western regions the institutional investors holds more stock of the listed companies in the eastern regions. With the consideration of the accounting information quality as variable, this thesis discovers that accounting information quality attenuates the regional preference of the institutional investors' decision of holding stock.Finally, this thesis offers suggestions in the implementing investment geographical diversity, coordinating the regional development and improving the accounting information quality of listed companies.