A Research On The Relationship Between Ownership Concentration And Stock Price Synchronicity From The Perspective Of Institutional Investor Shareholding

Stock price synchronicity is a phenomenon of "rising and falling" with the general market.The higher the stock price synchronicity,the greater the degree to which individual stocks can be explained by the general market,which indicating that the price of individual stock contains more information at the market level.And the stock price is disturbed by the noise trading,but the stock price contains less specific information about the listed companies,and the information efficiency is low.Stock price synchronicity,as an indicator of stock information efficiency and stock market volatility,has been paid more and more attention by researchers in recent years.The level of stock price synchronicity in China is much higher than that in developed countries such as Europe and the United States,and the phenomenon of individual stock price rising and falling along with the general market is more serious.Therefore,it is necessary to explore the factors that affect the synchronicity of stock price in order to perfect the stock market of our country.Ownership concentration is an important index to measure the ownership structure and control of a company,excessive ownership concentration will lead to large shareholders encroaching on the rights and interests of minority shareholders,selective information disclosure and other behaviors,which will affect the efficiency of corporate governance and information transparency.Thus,it has an impact on the corporate level specific information content and stock price synchronicity.Different from retail investors or minority shareholders,institutional investors have the characteristics of huge amount of capital and specialization of investment behavior,which have a profound impact on corporate governance and stock price fluctuations.In recent years,the CSRC and other relevant departments have repeatedly stressed the acceleration of institutional investors into the market.As an important participant in the stock market,institutional investors play a more and more important role in information disclosure and stock price formation mechanism.By introducing the institutional shareholding ratio as a regulating variable,this paper studies the relationship between ownership concentration and stock price synchronicity from the perspective of institutional shareholding.In the empirical study,the data of A-share in 2003-2018 were intercepted,and the samples were divided into state-owned holding company and non-state-owned holding company,and the empirical model was tested by multiple regression method.The empirical results show that there is a significant positive correlation between ownership concentration and stock price synchronicity.There is a significant negative correlation between institutional shareholding ratio and stock price synchronicity.It is found that the institutional shareholding ratio is a repressive variable of the positive correlation between ownership concentration and stock price synchronicity,which is an interactive item between the two indexes of ownership concentration and institutional shareholding ratio.The increase of institutional shareholding ratio can effectively restrain the rising effect of high ownership concentration on stock price synchronicity,and in the non-state-owned holding company sample performance is more significant.This shows that institutional shareholding state-owned holding companies is prone to weak supervision,while institutional shareholding non-state-owned holding companies can effectively participate in corporate governance,fully excavate the specific information of the company,and inhibit the synchronicity of stock prices.Finally,this paper puts forward some suggestions for market-related regulatory departments and institutional investors in the light of the above conclusions.