Institutional Investors’ Visits,Information Disclosure And Stock Returns Ratio

Based on the observation of the A-share market in 2020,it can be found that the number of institutional investors’ visits to listed companies and the indexes of various sectors of the A-share market showed a synchronous upward trend.The shares held by institutions together,represented by Kweichow Moutai and Contemporary Amperex,were warmly sought after by the market.Public funds created star fund managers one after another.In the seemingly lively A-share market,small and medium investors frequently sent out the distress of"making index but not making money" and "chasing up and killing down".In order to advocate rational investment by small and medium-sized investors and provide a new perspective for observing investment targets,the stock returns ratio impact of institutional investors’ visits to listed companies in the A-share market is studied in this paper by using the sample data from 2012 to 2020,constructing a model between the number of institutional investors’ visits and the stock returns ratio of listed companies,and considering the impact of information disclosure quality.Further,the change of stock returns ratio impact of the number of institutional investors’ visits is analyzed in several groups according to the nature of the company,the quality of information disclosure and the number of institutions conducting visits.The results show that the number of institutional investors’ visits has a significant positive impact on the stock returns ratio of listed companies.Compared with the impact on state holding companies,it’s stronger on private holding companies.This positive impact is also stronger on companies with poorer information environments,and increases significantly with the increase of the number of institutions conducting visits.The research results can provide investors,especially small and medium investors,with a new perspective to observe listed companies.In addition to considering the company’s fundamentals,market sentiment and other factors,investors can also judge the stock returns by observing the situation of institutional investors’ visits on listed companies.It could help investors to choose investment target more carefully,track company dynamics in time,reduce losses caused by blind follow-up investment and safeguard their own rights and interests.Meanwhile,the research results also provide a reference for listed companies to carry out investor relations management appropriately.Listed companies’ active communicate with institutional,medium and small investors can fully convey the company value information and improve the information transparency,which will be more conducive to maintaining the value of listed companies stock,strengthening the protection of the rights and interests of investors,especially small and medium-sized investors,and maintaining a good capital market order.