An Empirical Study On The Impact Of Institutional Investors On Stock Price Fluctuations

After more than 30 years of development,China's stock market has occupied an important position in China's national economy.In contrast,inrstitutional investors in China's stock market have accounted for more than 40%of the stock market value.The status and influence of institutional investors are gradually increasing,so the behavior of institutional investors deserves more analysis and research.In a sense,the proportion of institutional investors has become a symbol to measure the maturity of a stock market.Individual investors often mean irrational.If the proportion of individual investors is too high,it means that participants in this market are relatively The overall irrationality of the statement has caused the frequent entry and exit of funds,which has caused severe volatility in the stock market and is not conducive to the healthy development of the stock market.Many scholars have previously studied the impact of various institutional investors on stock price volatility,and almost no scholars have conducted research on the“national team”,an institutional investor that functions as a stabilization fund in the Chinese stock market.After related research,China Securities Finance Corporation,as the representative agency of the“national team",has its main responsibility to ensure the healthy and stable development of the Chinese stock market through market-based measures,rather than to perform value-preserving and value-added operations in the securities market.Therefore,it is of great significance to study the influence of institutional investors on stock price volatility and to better play the role of this institution and ensure the healthy and stable development of the Chinese stock market.The theoretical part of this article elaborates on the related concepts of institutional investors and stock price volatility.In this paper,a multiple linear regression model is used to empirically study the influence of the shareholding ratio of the CSF on the volatility of the stock price.It is found that when the stock market falls sharply and rapidly,there is a significant negative correlation between the shareholding ratio of the CSF and the stock price volatility;When the stock market is in the formation phase,the effect of stockholdings on stock price volatility is not significant.In order to increase the accuracy of the regression results,and also to observe the long-term relationship between the holdings of stocks and the stock price volatility,multicollinearity tests and cointegration tests were conducted in this paper.Finally,this article summarizes the conclusions of the article from the theoretical and empirical perspectives,and provides policy recommendations consistent with the conclusions.