Empirical Study On Institutional Investors,Analysts Concern And Insider Trading

Since 2006,when the reform of non-tradable shares,allowing the company insider buying and selling stocks,has been more than ten years of time,and insider trading in the stock market has become the focus,the listed company insider not only to create new information in the first time,but also the information of the publisher,is unable to transcend the information advantage.Foreign scholars based on the us market,the German market and the Hong Kong market have concluded that the insider trading has the ability to profit from excess earnings and the ability to predict future earnings.More news media showed the company insider for violating the law made some events that damage the interests of ordinary investors,to some extent this is not conducive to the orderly development of capital market in China,so it is necessary to thoroughly "treatment",the insider trading behavior and protect the interests of ordinary investors.Securities analysts appear to "cure" brought a dose of medicine for insider trading,analysts use their professional ability of the listed company's full range of information processing and analysis,and concisely express to the public in the form of text,which can reduce the information asymmetry,insider trading behavior to form a contact constraint,play the role of the external supervision.Existing literature,according to institutional investors is different from other medium and small investors,related law of ownership to the higher institutional investors stock trading limits,to some extent can be consistent with medium and small shareholders,big shareholders' behavior,the administration as the national policy guide and institutional investors are also play its governance role.And on the other hand,because the securities analyst at present did not form the independent organization system,are still employed by institutional investors,institutional investors would not influence securities analyst for short-term interests,to some extent affect the analysts and the relationship between insider trading,or in order to protect the interests of small and medium-sized investors,and analysts jointly supervise insider behavior of listed companies,this became the research contents of this paper.Based on the Shanghai and shenzhen a-share listed companies from 2014 to 2016 insider trading behavior as the research object,combining with the characteristics of its own system,deep research analysts concerned with the relationship between insidertrading behavior,as well as institutional investors will impact in between.After the introduction of multiple control variables,the empirical results show that the analyst's concern is negatively correlated with insider trading.That is,the more the analyst focuses on the listed company,the less the insider trading revenue.And institutional investors to analysts and insider trading regulation relationship,the results show that the analyst is helpful to supervise the listed company insider,as well as the institutional investors group reduced negative relationship of the two,so as to develop team and the construction of institutional investors,an analyst at mechanism to improve the capital market development provides a good clue and opportunity.