Research On The Return And Risk Of Institutional Investors In Energy Companies' IPO And Mergers And Acquisitions

Institutional investors in China have developed rapidly after the policy of the China Securities Regulatory Commission in the 21 st century.It is widely believed that institutional investors have higher professionalism than individual investors,and some scholars believe that Institutional investors can improve the company's operations to a certain extent,stabilize the company's stock price and play a good role in supervision.This paper takes the performance of energy IPO company in the first three years after listing and listing as a foothold,and studies the performance of long-term earnings and risks of companies with higher proportion of institutional investors,and explores institutional investors.Will it identify and invest in new listed companies that may be engaged in mergers and acquisitions?First,in order to explore the investment performance of listed energy companies and the long-term abnormal returns of the company under the difference of shareholding ratio of institutional investors in the IPO,the Fama-French three-factor model was used to examine 108 energy companies listed on the A-share market from1997 to 2015.Secondly,in order to explore the risk level of the company under the conditions of different institutional investors' shareholding in IPO,the GARCH-CoVaR model is used to calculate the risk value and volatility spillover of each company.In addition,the hypothesis test method is also used to test the difference between the indicators of the investor-owned company group.The results show that: First,institutional investors can identify energy companies with better performance after listing,but institutional investors can not identify well-performing bidders.Due to limited sample,this paper does not discuss the target company's abnormal returns.At the time of IPO,the mergers and acquisitions of institutional investors with a large proportion of shares were significantly higher than the IPOs when the IPOs had a lower proportion of mergers and acquisitions,but no similar conclusions were found in the target companies.Regardless of the shareholding ratio of institutional investors,energy listed companies have greater willingness to acquire other companies.Second,Companies with a large proportion of institutional investors have their own risk levels and risk-contagion levels for listed companies in the energy industry.Indicate that institutional investors are still not able to identify and monitor risks better.The significance of this paper is to explore the institutional investors' ability to identify the returns and risks of energy companies,and to pay attention to the relationship between the company's listing and its subsequent M&A activities,that is,to explore whether there is a potential link between the company's IPO activities and M&A activities.This will further enhance the integrity of the existing theoretical framework.By continuously improving the understanding of the behavioral characteristics of institutional investors,it is possible to formulate more targeted laws and regulations to guide the market.