Research On The Influence Of Institutional Investors On Stock Market Fluctuation

Global scale after the U.S.stock market in China,but frequent volatility in the process of development and severe speculation,individual investors as the main body of the irrational investors structure is a major cause of lead to this phenomenon.Compared with the lagging of retail investors,institutional investors hold more shares in the market.Therefore,the development of relatively rational institutional investors is regarded as an important way to solve the excessive fluctuation of China's stock market.Institutions into structure for 2018 stock investors,the most prominent feature of also as an important incremental funds in the stock market,they will be for next year and even in the next few years the stock market valuation and market characteristics play a very important and far-reaching influence.Therefore,it is very necessary to deeply analyze whether the unconventional development of institutional investors has an impact on China's stock market volatility.This article selects the first quarter of 2011 to the fourth quarter of 2017,a total of 28 quarter of institutional investors holding data,mainly adopts the nonparametric method and balance panel data model,the empirical method,study the influence of institutional investors in the stock market volatility.First of all,on the basis of reviewing the existing researches,this paper reviews the development history and current situation of institutional investors at home and abroad,and analyzes the development experience that can be used for reference abroad and the current development situation of China.Secondly,on the basis of theoretical analysis,the mechanism of institutional investors' influence on market fluctuation is analyzed from the perspective of efficient market theory and behavioral finance.Thirdly,the relationship between institutional investors and stock market fluctuation is tested from different stages.Finally,some policy Suggestions are put forward on the basis of theoretical and empirical analysis.The empirical results show that in the whole sample period,the participation of institutional investors in a bear market has no effect on the stock volatility,while in the bull market,the volatility increases.During the gentle development stage of institutional investors,institutional investors in bear market have no influence on the volatility of stock market,and play a certain role in stabilizing the market in the bull market.Across development,whether it's a bull market or bear market,institutional investors are equities in the booster,the higher the stake,the stock volatility,the greater the ownership change,the greater the fluctuation is bigger;The wave over the bull market in the adjustment period,a bear market,the possible reason is that institutional investors after soaring stock market slump and the global financial crisis,investment more cautious in the rally,and pay more attention to stop in the downtrend,sold stocks lead to more volatile.