Classification Research On The Impact Of The Institutional Investors On The Volatility Of The Stock Returns

Institutional investors have played an important role in the securities market.They are supposed to be more rational and professional compared with individual investors,for its advantage of the inherent in stabilizing stock market.But with the growth of institutional investors in the market scale,its negative behavior in the securities market is increasing.People began to re-examine the role of institutional investors in the stock market.At present,the development of institutional investors in our country is increasingly growing,they have had a huge impact on securities market for their quantity and capital scale.So,it is necessary for us to study the impact of institutional investors on stock yield fluctuation in current period and market environment.More noteworthy is that the influence of different institutional investors in the stock market is different,it is necessary to study the influence of different institutional investors respectively.As a result,we can put forward the corresponding policy recommendations according to different times and different institutions.This paper adopts two methods: comparative analysis method and the combination of theory and empirical methods.First of all,the classification researches on the current development and the investment features of several main kinds of institutional investors in our country.Thus,we can put forward the research assumption according to the characteristics of different institutional investors;Then,building panel data regression model to regress the actual influence of various institutional investors holding on the stock return volatility.Through the theoretical analysis and empirical study,we conclude that different institutional investors’ shareholding have different effect on stock return volatility.Among them,the open-end fund,social security funds,trust companies,the QFII’s shareholding reduce the volatility of stock returns;Closed-end funds,insurance companies’ holding don’t have significant influence;Securities company’s shareholdings increase the volatility of stock returns.Based on the theoretical analysis and empirical regression,we can put forward the corresponding policy recommendations.