Research On The Influence Of Institutional Investors On The Quality And Efficiency Of Information Disclosure Of The GEM Listed Companies

Since the large-scale development of institutional investors in the capital market,more and more families and individuals began to participate in the stock market through professional investment institutions.The number,size,overall quality and the investment levels of our country’s institutional investor share been significantly improved.In the capital market of our country,the information disclosure system let the listed companies be displayed in front of the public.The situation of the companies’ public information,namely the quality and efficiency of the public information,is one of the most interesting subject of our investors,academics and regulators.In recent years,there are more and more irregular tradings in our country’s securities market.Our securities market regulator spay more attention to the information disclosure and institutional investors,and increase the intensity of regulation and punishment.Most listed companies and institutional investors in the Growth Enterprise Market were punished because of their illegal operations.Therefore,based on the previous studies,this paper focuses on the relationship between institutional investors and the information in the Growth Enterprise Market.This paper makes an empirical study on two aspects,which are the quality and efficiency of information disclosure from the companies listed and institutional investors.This paper selects the companies listed on GEM as the sample before from 2011 to 2015,and a total number of stocks are 491.This paper measures the quality of information disclosure of GEM listed companies by the reliability and transparency of financial reporting,respectively with the degree of earnings management and the GEM information disclosure evaluation results.The empirical results showed that the more the number of institutional investors,the higher the reliability of financial report of listed companies is.And the regression results of the proportion of institutional investor shares are inapparent.Then,the GEM company information is more transparent with the increase of shareholding of institutional investors.In this paper,an empirical study on the efficiency of information disclosure of listed companies on GEM is carried out in three aspects: variance ratio test,stock price synchronicity and post earnings announcement drift.The empirical results are as follows:first,the more the number of institutional investors,the more the stock price following the random walk,and the higher efficiency of the listed companies’ information.But higher proportion of institutional investor shares,the less the stock price following the random walk.Second,with the increase of the proportion of institutional investor shares and the number of institutional investors,the stock price synchronicity is reduced.Third,institutional investors can significantly reduce the post earnings announcement drift phenomenon,and enhance the efficiency of company’s information disclosure.Overall,our country’s institutional investors do play a role in improving the quality and efficiency of information disclosure of GEM listed companies.With the increase of the proportion of institutional investor shares and the number of institutional investors,the quality of information disclosure and the reliability and transparency of financial information of listed companies are improved.The increase of the proportion of institutional investor shares and the number of institutional investors can also promote the efficiency of information disclosure on GEM,reduce the stock price synchronicity,make stock price in line with the random walk,and and reduce the post earnings announcement the drift.