| Stock price synchronization has been widely existed in various securities markets all over the world.Its main manifestation is the “rise or fall together” in share price with the whole index of market.The higher stock price synchronization shows that the share price is independent with respect to the market behavior,which means that the share price contains more firm-specific information and the pricing efficiency and information efficiency of the securities market is higher.As a newly developing market in China,the stock price synchronization of A shares has been at a high level,which greatly affects the pricing function as well as the function of resource allocation of China's securities market.It is of great importance to study the influencing factors of stock price synchronization and discuss how to reduce the stock price synchronization for the development of the stock market.As the professional investors in market,institutional investors have more money,more professional staff,more reasonable investment strategy and more information superiority compared with common retail private investors.With the continuous development of the securities market,institutional investors will replace the retail private investors and become the leading force in the market.Therefore,the study of institutional investors' impact on stock price synchronicity from the perspective of institutional investors and measures to reduce stock price synchronization is a feasible direction to improve the securities market efficiency.At present,there are not so many studies on institutional investors and stock price synchronicity and the institutional investors regarded as a whole mostly.The research of different institutional investors' impact on stock price synchronicity is rare.Therefore,based on China's stock market,this paper divides the institutional investors into pressure-sensitive type and pressure-resistant type institutional investors in accordance with that whether institutional investors and invested listed company have business association and studies the different effects on stock price synchronicity of different institutional investors from the perspective of heterogeneity of institutional investors.At the same time,based on the characteristics of unbalanced institutional environment development among regions in China,institutional environment is introduced as regulated variable as a moderator to study the influence between institutional investors and stock price synchronization relation.This paper discusses the institutional environment in China's various regions,relation between different types of institutional investors and stock price synchronicity based on the sample research of the panel data of f small and medium-sized enterprises in China's securities market from 2011-2014 and draw the following conclusions.First,the stock price synchronization and institutional investors overall shareholding ratio is negatively correlated.The improvement of institutional investors' proportion is beneficial to reduce the stock price synchronization on the whole.Second,pressure-resistant institutional investors can significantly reduce the stock price synchronization while the pressure-sensitive institutional investors' inhibition function on stock price synchronization is not obvious.Third,the institutional environment has a moderating effect on the relation between the various types of institutional investors and stock price synchronicity.Specifically speaking,the inhibition function various types of institutional investors on stock price synchronicity will become more and more obvious and inhibition effect will become larger and larger with the improvement of institutional environment.Finally,based on the theoretical and empirical conclusions,this paper puts forward four suggestions to reduce the stock price synchronization and improve the effectiveness of the securities market in China.First,China shall support the development of institutional investors and improve the proportion of institutional investors in the market in China.Second,China shall promote the diversification of institutional investors.Third,China shall implement differentiated supervision of different types of institutional investors and highlight its focus.Fourth,China shall promote the construction of the institutional environment in various regions in China. |
PDF Full Text Request