Research On The Influence Of Institutional Investors On Stock Price Information Efficiency Under Registration System

Under the reform of registration system,the structure of Chinese investors tends to be institutionalized.In the future,the investment behavior of institutional investors will greatly influence the stock price fluctuation.According to the efficient market hypothesis,many scholars have proved that the Chinese stock market is weak and efficient.Some scholars have proposed that institutional investors,as value investment and information traders,can accelerate the reflection of stock prices on idiosyncratic information and improve the effectiveness of the stock market.Some scholars hold the opposite view,believing that institutional investors will take advantage of their information advantages to adopt positive feedback trading strategies to increase the volatility of stock prices and push stock prices further away from the intrinsic value.The controversial point focuses on whether institutional investors make the right use of information advantages to uphold value investment.Some scholars believe that strict information disclosure under the registration system will reduce the excess profits of inside information,and institutional investors bear greater fiduciary responsibilities and are subject to supervision by multiple parties,which greatly restrains their irrational behaviors.However,relevant studies only put forward this point of view without elaborating the influence mechanism in detail,and lack quantitative research support.Therefore,the study of the impact of institutional investors on the information efficiency of stock prices under the registration system has certain theoretical and practical significance.Based on the review of the existing literature,this paper first defines the concepts of professional vocabulary such as registration system to clarify the connotation and facilitate understanding.Secondly,the influence channels of institutional investors’ shareholding behavior and trading behavior on stock price information efficiency are analyzed from the theoretical level.The influence channels of shareholding behavior mainly include: participation in corporate governance,analyst tracking,medium-and long-term shareholding;the influence channels of trading behavior include: buying and selling behavior,individual investors’ following,and coercion to strengthen supervision.Then the reform factors of registration system are added to analyze the changes of the above influence channels,and then the research hypothesis is put forward.Then,in order to verify the hypothesis,the data of main variables are collected and empirical research is carried out to explore the quantitative relationship between institutional investors and stock price information efficiency under the registration system.The stock price synchronization was selected as the explained variable,and the shareholding ratio of institutional investors and its changes were selected as the explanatory variable,and the dual fixed effect model was constructed for regression analysis.Firstly,the influence of institutional investors’ behavior on the synchronicity of stock prices in the main board market is analyzed,and the relationship between the two is generally grasped.Then,according to the important policy points in the process of Chinese registration system reform,the author makes a longitudinal comparison and analyzes whether institutional investors are affected by reform and have different effects on the stock price synchronization.Then,taking GEM as the pilot sample of the registration system,the paper compares the specific relationship between institutional investors’ behavior and the synchronization of stock prices before and after the registration system,and makes a horizontal comparison with the main board market,so as to draw an empirical conclusion.Finally,the robustness test was performed to verify the reliability of the conclusion.The research shows that in the main board market,the shareholding behavior of institutional investors helps to improve the information efficiency of stock prices,while the trading behavior will weaken the information efficiency of stock prices.With the steady progress of the reform of registration system and the establishment and improvement of supporting mechanisms,institutional investors have increased their contribution to the improvement of stock price information efficiency,and their trading behaviors are subject to stricter supervision by regulatory authorities and other investors,thus starting to strengthen the stock price information efficiency.At the same time,due to the problem of inadequate supervision in the transitional stage of the system,The holding behavior of institutional investors will hinder the information efficiency of stock price in a short time.Therefore,while vigorously developing institutional investors,our country should focus on professional quality training and make progress with several quality;Second,we should steadily advance the reform of the comprehensive registration system and promote the return of investment to the market.Finally,we should improve the supporting mechanism construction and strengthen the supervision of the whole process,so as to ensure the high-quality development of the stock market in our country.