Motivation And The Market Reaction Of Share-Raising Of Insurance Funds

From the perspective of practical market,the stock increase behavior of insurance fund is always highlighted in bear market.From July,2015,A-share stock market in China entered the stage of bear market,and a new upsurge of stock increase of insurance funds is raised among the listed companies.The last bear market in our country's securities market of last economic cycle ended at December,2012.And after the great bear market in 2012,Chinese securities market has ushered a new economic cycle.Therefore,to investigate the investment behavior of insurance fund in A-share stock market in a complete market cycle from March 31,2013 to March 31,2016 is of great significance to analyze the investment strategies and transaction motivations of insurance fund in complete market cycles,and so as to research the insurance fund's functions on stock market's stability further.Existing researches at home and abroad mostly study the motivations of stock investment increase of the big stockholders and insiders like senior executives.And there are few researches studying stock investment increase's motivations from the perspective of the investors from insurance fund institutions.According to our country's Securities Law stockholders and senior executives who hold more than 5%stock are the insiders of company's inside information.The innovation point of this paper is that based on that the stockholders who hold 5%or more after stock increase of insurance funds are insiders of the company,to combine the stock increase of insurance funds with insiders' transaction motivations.Based on the analysis of the insurance fund's sources audits investment characteristics,and taking the researches about insiders' transaction motivations at home and abroad as reference,the paper makes a good use of market timing theory and control benefit theory in the study of stock increase motivations of insurance funds.And in order to find the stock increase motivations of insurance fund,the paper puts forward the opinion that the stock increase behavior of insurance fund is mainly based on three hypothesizes,that is market timing motivation,control right increase motivation and asset liquidity maintenance motivation.This paper studies the stock increase behavior of insurance funds by the stockholders who hold more than 5%stock in 12 quarters from March 31,2013 to March 31,2016.This research is more persuasive than the study of the overall stock increase behavior of insurance funds to analyze the stock increase motivations of insurance funds.As for the study of stock increase proportion of insurance funds,we choose the study object seriously.Choosing one listed company's quarterly financial statements,the next quarter's stockholding proportion of insurance funds minus the last quarter's stockholding proportion of insurance funds,and make a combination of the increase proportion if the ultimate controller is the same insurance funds' stockholder in equity structure.After the combination,if the stockholding proportion is more than 5%,the stock increase of insurance funds shall be chosen as research object of this paper.Finally,there are 227 qualified samples by calculating.Analyzing the stock increase data of A-share listed companies,the stock increase of insurance funds is mainly concentrated in the second half of 2015 with an average increase of 5.42%.This paper builds the linear regression model first,and analyzes the stock increase motivations from the perspective of stock increase proportion of insurance funds so as to verify the above three hypotheses about motivation.By which we get the following conclusions:the stock increase of insurance funds occurs when the company's stock price is undervalued,and the stock increase proportion is positively related to the possibility that company's stock price is undervalued;the stock increase proportion of insurance funds is negatively related to ownership concentration while positively related to the first big shareholder's equity balance degree;the stock increase proportion of insurance funds is positively related to the company's stock liquidity significantly,which proves market timing motivation,control right increase motivation and maintain asset liquidity maintenance motivation.Due to the long-term stability of stock investment behavior of insurance funds,this paper further studies market reaction of stock increase and its effect on market stability.By establishing linear regression model,the paper the stock increase proportion of insurance funds' influence on cumulative excess returns and stock price volatility,and it is found that the cumulative excess returns in the month of stock increase is positively related to stock increase proportion of insurance funds significantly,and there is no significant correlation between stock price volatility and stock increase proportion.Therefore,we can get the conclusion that stock investment increase of insurance funds has significant market reaction,the greater the stock increase proportion is,the more intense market reaction is,and there is no significant influence on market stability.