An Empirical Analysis Of The Impact Of Institutional Investors’ Shareholdings On Stock Price Fluctuation

In order to meet the requirements of the rapid development of the financial market,China’s investor structure is gradually shifting from individual investors to institutional investors.The Internet finance industry is a combination of China’s modern technology and traditional theories,including many individual investors and institutional investors.Then,whether institutional investors play a role in stabilizing the capital market is a problem worth studying.However,the literature found that the impact of institutional investors’ shareholdings on stock price volatility is different and there is no specific conclusion.There are three main points of view: the first view points out that institutional investors’ holdings inhibit the fluctuation of stock prices and stabilize the market;the second view is that institutional investors’ stocks promote the fluctuation of stock prices;The impact of shareholding on stock price volatility is uncertain.Therefore,this paper takes the listed companies in the Internet finance industry as the research sample,and studies the impact of different types of institutional investors’ shareholding on the stock price fluctuation of listed companies,and analyzes the reasons for institutional investors’ shareholding.The empirical results show that institutional investors’ holdings inhibit market volatility.Among them,the general legal persons among institutional investors are particularly prominent in stabilizing the market.The general corporate shareholdings are negatively correlated with stock price volatility,which has stabilized the market.The role of the device.In contrast,the fund company’s shareholding has a significant positive correlation with the stock’s yield and volatility,indicating that the fund’s short-sighted behavior caused by competitive pressure during the operation promotes the trading frequency of the fund institution and frequent large-value transactions.Increased the volatility of the stock market.The empirical results also show that institutional investors are more inclined to value investment,and in the market before and after the volatility of the market,the institutional holdings of the industry still maintain steady growth.Further analysis shows that although the influence of securities companies,insurance and other institutional investors’ shareholdings on the stock market volatility of the Internet financial industry is not significant,the comprehensive shareholding of various institutions has significantly increased the suppression of stock price volatility,and various institutional investors There is a negative correlation between shareholding and stock price volatility,which indicates that the development of diversification contributes to market stability.This paper has certain value for deepening the theory of institutional investors,which is conducive to stabilizing the volatility risk of the Chinese market,enhancing the stability of the market,reducing the irrational investment model,and thus promoting the healthy development of China’s capital market.