Categories Of Institutional Investors And Volatility Of Stock Market

The dramatic changes in the stock market of our country always make all people feel strange and unpredictable.The shock of A shares in China and foreign countries occurred in 2015,which has brought great impact to the majority of the shareholders and related industries,and the negative effects are difficult to dissipate so far.From the third quarter of 2014,the A stock market came to an exciting bull market,and the so-called "mad cow" market began at the end of November,until the Shanghai index reached the peak of the 5178 point bull market in June 12,2015.After the opening of A shares in June 15,2015,the market went down sharply,and the Shanghai Composite Index collapsed 35% in the four weeks,which eventually led to the so-called "stock crash".The violent fluctuation of the stock market has brought huge losses to the majority of the shareholders and seriously endangers the healthy development of our country's economy.However,the "stock disaster" also rounded the alarm for the domestic stock market which developed rapidly this year.All the data in the domestic stock market during the "stock market disaster" are valuable wealth and are worthy of the financial practitioners.Enter the study.The occurrence of "the disaster" has stimulated the academic enthusiasm of the financial and economic scholars.In a short period of time,a large number of scholars have made a comprehensive summary of the causes,consequences and Enlightenment of the disaster.Following the academic upsurge,this paper focuses on how the shareholding behavior of institutional investment affects stock price fluctuation in this period.This paper first systematically combs the theory of this aspect,summarizes the research results of scholars at home and abroad in this field,and finds that although the theoretical analysis of how institutional investors affect the stock market is more mature,different scholars have not reached consensus on how institutional investors hold stock price fluctuations.The empirical analysis of this problem often has obvious time difference,that is,different periods of the sample will show different results.Then,a general review of the classical theories of institutional investors affecting the volatility of stock prices,including principal-agent,herd effect and feedback trading mechanism,is introduced.On this basis,the study of the investment style and regulatory policy of different types of institutional investors in China suggests that different categories of institutions have different effects on the volatility of stock prices.The hypothesis of "ringing".In the empirical analysis,through F test and Hausman test,the paper finally chooses the fixed effect model to return the panel data of 16801 groups of samples in the A share market in the third quarter of 2014 to the first quarter of 2016.The empirical study is divided into two parts.First,the relationship between the overall shareholding ratio of institutional investors and the volatility of stock prices is studied.It is found that institutional investor ownership is helpful to maintain stock price stability in the whole research area,but this effect is limited to the bull market and investment in the case of the stock market as a whole.The shareholding of institutions will stimulate the volatility of the stock price.On the other hand,through the study of the relationship between the shareholding ratio of different investors and the volatility of stock prices,it is found that the differences in institutional categories lead to different institutional investors with different effects on the volatility of stock prices.In addition,there are differences in the impact of the same type of institutional investors on the volatility of stock prices in different market quotations.Finally,this paper gives the main conclusions,including institutional investors' shareholding,which significantly reduces the volatility of stock price,but it is mainly reflected in bull market.There is a certain difference in the impact of the stock ownership behavior on the stock price.Most institutional investors can restrain the volatility of the stock price,but the share of the social security fund has a stimulating effect on the volatility of the stock price in the study interval of this paper.