A Study Of Effect Of Hang-up On The Investment Behavior Of Institutional Investors

The rise of institutional investors is one of the biggest changes in the global financial system in the last three decades. As the major investment strength in the stock market, institutional investors have significant advantages in terms of capital, information and so on when compared with individual investors who have small-scale fund, low investment professional competence, low quality of access to information and the limit of channels and the speed of accessing to information. So it stands to reason that the events of hold-up should be relatively few. However, in reality, the hold-up events of the institutional investors gradually increased, and the frequency also gradually increased, which have a certain effect on the development of institutional investors and securities market. So it is quite necessary to study the investment behavior of institutional investors under the hold-up situation.Based on the premise of hang-up of institutional investors, this work analyzed the effect of hang-up on the investment behavior of institutional investors in depth. Firstly, this work described the formation mechanism of hang-up of institutional investors, and introduced its characteristic performance. Secondly, this work theoretically analyzed the effect of hang-up on the investment philosophy and investment behavior of institutional investors, and innovatively discussed that the institutional investors achieved a reduction of the hang-up with individual stock, shareholding behavior of waiting and self-help through a band operating mode with the combination of contrarian and momentum trading. And this paper emphatically introduced the game behavior among personal investors, other institutional investors and institutional investors who used their information and scale advantages in order to mitigate. Then this paper established a model of empirical analysis and conducted necessary empirical study on the factors affecting the investment behavior of institutional investors from the market level and individual stock level, and further analyzed the empirical results combined with the theoretical studies. Finally, on the premise of summary of the theoretical analysis and empirical results, we drew the conclusion of this paper, and proposed the relevant polices and proposals based on the conclusion.The theoretical analysis and empirical studies of this paper have shown that the rate of change in earnings per share of hang-up with individual stocks, the ups and downs of magnitude of shares, and the turnover of the fundamental factors of individual stocks played major impact on the contrarian and momentum behaviors of institutional investors, while the topix index rate of return of security market had limited impact on the investment behavior of institutional investors. In order to reduce the hold-up number and limited rational investment behavior of institutional investors, the government should improve the disclosure of information and establish the functions of multi-level pattern of institutional investors. Institutional investors should enhance their rational investment via fostering the concept of value investment, and improving internal management as well as incentive system. In addition, it should also strengthen the supervision of listed companies through the market and internal management as a way to promote the healthy development of institutional investors and securities market in china.