A Study Of The Effects Of Institutional Investor's Behavior On The Stability Of The Stock Market Of China

In the recent years, the management department developed the institutional investors vigorously in order to keep the stock market stable. In the basis of review about the institutional investor's behavior correlation theoretical analysis and the empirical analysis, the paper attempt to carry on the thorough theory and the empirical analysis on the Chinese institutional investor's investment behavior characteristic and its influence to the stock market stability, so that provide the management department some valuable conclusions and policy suggestions to strengthen the institutional investor's function of keeping the stock market stable.The paper introduces the concept of the stock market stability and studies some investment behavior characteristics of the institutional investor, as well as action mechanism of the institutional investor' s behavior influencing the stock market stability. Through the empirical analysis on some typical characteristic investment behaviors and its influence to the stock market stability, for example liquidity preference,herd behavior, and so on, I find the institutional investor's some investment behaviors intensify the market undulation in the certain degree.According to the study , the author thinks that in order to guarantee truly the institutional investors stabilizing the market, first we must further consummate the stock market environment, for example solves the stockholder' s rights and some questions left over by history as soon as possible, the introduction of option and some other tools to dodge the market risk; Second enhance the company quality in the stock market, it can change the present majority of the short-term investment idea; Finally, need to perfect the institutional investors.