Empirical Research On The Correlation Between Institutional Investors' Trading Behavior And Stock Price Fluctuation

China's stock market is becoming more and more mature in the course of continuous reforms,but the investor structure is not reasonable enough.Stock prices will fluctuate violently from time to time,not only causing heavy losses to investors,but also not conducive to economic development.Institutional investors,as an important investment entity participating in the stock market,if they can sort out the impact of their shareholding ratio and shareholding changes on stock price fluctuations,whether it is to maintain market stability or promote economic development,Helpful.This article systematically sorts out relevant research results at home and abroad,analyzes the development status of China's stock market and institutional investors,and finds that institutional investors' professional rationality and information advantages can prompt stock prices to return to value,thereby alleviating stock price fluctuations;while positive feedback trading and The herd effect has caused institutional investors to conduct a large number of transactions in the same direction,changing the supply and demand of stocks within a short period of time,resulting in abnormal changes in stock prices and exacerbating stock price fluctuations.In the current development stage of China's stock market,the value investment concept is not deep enough,laws and regulations are not sound enough,and there are loopholes in supervision.In general,institutional investors' trading behavior has a greater role in aggravating stock price fluctuations than mitigating effects,but some professional institutional investors will Play a role in stabilizing stock prices.In the empirical research part,this paper selects the relevant data of 23 quarters from the first quarter of 2014 to the third quarter of 2019,and divides the trading behavior of institutional investors into static shareholding levels and dynamic shareholding changes.This paper first uses cross-section regression,mixed OLS regression and fixed effect models to study the relationship between the institution's overall shareholding leveland stock price volatility,and then uses the fixed effect model to study the institution's shareholding ratio and shareholding change and share price The relationship between volatility finally explores the impact of different types of institutional investor trading behavior on stock price volatility.The research results show that the current trading behavior of domestic institutional investors generally exacerbates stock price volatility,and the higher the share of institutional investors,the greater the shareholding changes and the greater the stock price fluctuations.At the same time,different types of institutional investors,Its trading behavior will also have different effects on stock price fluctuations.This article proposes to revise the investment philosophy,optimize investment institutions,and at the same time improve relevant laws and regulations,take into account the different effects of different types of institutional investors on stock price fluctuations during the supervision process,and focus on differential supervision.