The Influence Of Institutional Investor Network On The Volatility Of Stock Price

The in-depth development of China's stock market has made the institutional investor team grow stronger.Compared with many retail investors,institutional investors plays a leading role and has a strong influence among investors.However,investment behaviors among institutional investors are interconnected and form a complex investor network.So,does the existence of an investor network affect the volatility of stock prices? How is it affected? In order to answer these questions,the paper conducts an in-depth study on the theme of institutional investors' influence on the volatility of stock prices.First,according to the idea of complex networks,the institutional investor network of stocks is constructed,and empirical analysis is used to examine how investors influence stock price volatility.When constructing the investor network,the dissertation selects the 2009-2017 Wind Public Offering Funds Quarterly Report data,treats the stocks with heavy holdings as institutional investors for stocks,and draws on the idea of complex networks to establish links with funds that hold the same stocks.It makes up the fund network,and on the basis of the fund network,the funds that invest in the same stocks and their respective fund networks constitute an investor's network of stocks.Then,the paper constructs indicators of investor network structure—network density and network degree—to measure the speed of information dissemination in the network and the network closeness,and test the existence of the investor network,through the total sample,the scale and various industries,an empirical study of the impact of institutional investor networks on the volatility of stock prices was conducted.Empirical research results show that the network density is significant negative related to stock price volatility,that is to say,the closer the stock investor's network,the smaller the stock price volatility;the degree of the network is significantlynegatively correlated with the stock price volatility,the more concentrated the investor network,the smaller the stock price volatility.Constructing an investor network based on the idea of complex networks and examining the impact of investor networks on the volatility of stock prices,expanding the research on asset pricing;and providing new ideas for regulators to stabilize market development and reduce financial risks,and also provides a scientific basis for investors to choose reasonable investment behaviors.