The Impact Of Institutional Investors On The Stock Market Volatility

The investor structure of the securities market in the Western developed countries has undergone the process of changing from individual investor to institutional investor mainly,because of the short development time and the immature development of institutional investors,individual investors have long occupied the leading position.After experiencing the "ultra-conventional development institutional investors" and the share-splitting reform,the investor structure of China's stock market has undergone great changes,the general corporate investors have rapidly increased shareholding,instead of individual investors to become the largest investment body,the type of institutional investors and asset scale are also rapidly expanding,The proportion of individual investors ' shareholding has been decreasing,and the "institutional" trend of investor structure is forming.The influence of institutional investors on stock market volatility has been controversial,this paper analyzes the mechanism of institutional Investor's influence on stock market fluctuation from the macroscopic point of view,analyses the dynamic relationship between institutional investors' shareholding ratio and stock market volatility,and the relationship between institutional investors ' investment behavior characteristics and stock market fluctuation.Firstly,the Securities Investment Fund is chosen as the research object,the statistical analysis of its transaction data shows that the fund does exist irrational behavior of chasing up and falling,and then through establishing VAR model,the dynamic relationship between institutional shareholding and index fluctuation is analyzed,and the results show that the change of institutional shareholding is positively correlated with the index volatility rate.Finally,the relevant policy recommendations are put forward.