| Institutional investors are increasingly becoming an indispensable force in the capital markets of various countries by virtue of their strong information channels,capital scale,excellent analytical capabilities and many other advantages.In the process of de-retailing in the United States,institutional investors,mainly pension funds,mutual funds,and hedge funds,have occupied the vast majority of the market,thus promoting the 20-year-old bull market in the US stock market.It has promoted the prosperity of the capital market and lowered the financing cost of the real economy.Compared with developed countries,the establishment of a standardized capital market in my country is very short.In 1990,my country established the Shanghai and Shenzhen Stock Exchanges.my country only started from nothing in 30 years.Now my country has become the second largest capital market in the world.In the past 30 years,my country has experienced a very special phenomenon of many times of sharp rises and falls,rapid rises and slow falls.In order to stabilize my country’s stock market,my country began to explore the development path of institutional investors and the mechanism of institutional investors on stock price fluctuations after insurance funds entered the securities market in 2004.According to the research on the development path of institutional investors in foreign developed markets,my country has made a lot of effective explorations in exploring the scale and development of institutional investors.Such as information disclosure,ownership structure,institutional reform,etc.However,through inquiries on domestic and foreign literature reviews,scholars have a lot of controversy over the relationship between institutional investors’ shareholding and stock price fluctuations.Some scholars believe that institutional investors can To restrain stock price fluctuations,some scholars believe that institutional investors exacerbate stock price fluctuations,but no clear conclusion has been drawn so far.Considering the current securities investment funds in my country,insurance funds increase the proportion of equity securities investment,pensions entering the market and other factors.At this stage,it is particularly important to explore the role of institutional investors on stock price volatility.This paper will explore the degree of influence between institutional investors and stock price volatility from a combination of theoretical and practical levels.First,from a theoretical point of view,this paper explores the reasons for institutional investors’ shareholding and stock price fluctuations through the efficient market hypothesis and behavioral finance.Secondly,through empirical research,panel regression is used to analyze the impact of securities investment funds,insurance and QFII on the securities market at the overall level(2007-2020)and in stages(2007-2013,2014-2020).In empirical research,this paper finds that institutional investors’ shareholding has a significant impact on the volatility of SSE A shares.However,during the regression in stages,it was found that the impact of securities investment funds on stock price volatility during the period from 2014 to 2020 was significantly smaller than the impact on stock price volatility from 2007 to 2013;the impact of insurance funds on stock price volatility during the period from 2007 to 2013 was Negative,that is,slowing down the volatility of stock prices,and the volatility of stock prices intensified from 2014 to 2020;the impact of QFII on stock price volatility and insurance funds turned positive and negative.Finally,according to the conclusion of the influence degree obtained by the empirical research,some suggestions and opinions are put forward for the perfect development of our country’s institutional investors and securities market. |
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