The Shareholding Preference Of Robust Institutional Investors

Under the background of the pressure of old-age security and the gradual entry of pension into the market,this paper studies the shareholding preference of robust institutional investors represented by basic pension fund,social security fund and enterprise annuity.Compared with fund and securities companies,this paper aims to explore the equity preference of robust institutions and the heterogeneity of different types of institutions.This paper finds that the robust institutions represented by pension funds prefer stocks with higher volatility,lower beta,lower turnover rate,higher price,lower shareholding ratio of the largest shareholder,higher proportion of state-owned shares,lower information transparency,longer time to market and lower historical returns.From the homogeneity of institutional shareholding preference,robust institutions and securities investment institutions are more willing to hold high volatility of stocks,even the robust investors do not have complete prudence.Moreover,all kinds of institutions generally have a preference for the value stocks with lower beta and liquidity.From the heterogeneity of shareholding preference,robust institutions prefer companies with a higher proportion of state-owned shares,while fund companies tend to hold companies with a lower share of state-owned shares.Social security funds prefer companies with low transparency of information,belonging to the long-term organizations,hoping to mine undervalued stock through their own information advantages.But funds and securities firms are in line with the characteristics of shortterm investors.They prefer companies with higher transparency to avoid the risk of asymmetric information.Robust institutions prefer companies with longer time to market while funds and securities firms prefer companies with shorter time to market.Robust institutions prefer companies with lower historical returns while funds and securities firms prefer companies with higher historical returns.In order to ensure the robustness of the conclusion,different variables are used to measure the shareholding preference and information transparency.In addition,according to the market condition and the shareholding ratio,this paper makes a grouping study on the institutional shareholding preference,and finds that the institutional shareholding preference shows some differences under the bull market and bear market as well as the different shareholding ratio levels.Moreover,through the study of the shareholding preference of insurance companies,this paper further classifies the robust institutions,and finds that the preferences of insurance companies and enterprise annuities for information transparency are different from that of social security funds,which prefer stocks with high information transparency.It enriches and expands the conclusions of the study.