The Influence Of QFII Shareholding On Corporate Systemic Risk And Idiosyncratic Risk

Under the background of economic globalization,the opening up of capital market is the only way for our country to go.As an important measure of capital market opening to the outside world,QFII(qualified overseas institutional investors)has experienced the development and change from scratch to small since entering the securities market of our country in 2003,and the related reform is still advancing in depth.QFII have more mature investment ideas than ordinary domestic investors,their entry and development have improved the level of capital market opening,promoted the healthy and standardized development of China’s financial market,and played an important role in market stability,corporate governance and corporate value.The research on QFII is still a hot topic at present.The existing theory shows that investors are based on both risk and return parameters when making decisions,so investors pay attention not only to the performance of the company,but also to the risk level of the company.Risk is divided into systematic risk and idiosyncratic risk according to source and dispersion.systematic risk can not be eliminated by decentralized investment,but it can be reduced by reducing the sensitivity of the company to external market or economic factors.The idiosyncratic risk of the company is related to its own characteristics and related business decision-making behavior.Due to the uncertainty of capital market and its own immaturity,listed companies in China inevitably face systematic risks and idiosyncratic risks,so they should be paid attention to and paid attention to.The study of risk factors provides further theoretical basis and practical significance for the risk management behavior of the company.With the relevant theory,this paper takes A non-financial listed companies as the research object to analyze the impact of QFII holding behavior on corporate risk.QFII shareholding can effectively reduce the systematic risk and idiosyncratic risk of the company,the higher the shareholding ratio,the more the increase,the lower the risk of the company.And the impact of QFII on idiosyncratic risk will be more obvious in areas with higher marketization,because in areas with high marketization,the role of the "invisible hands" in the market can be brought into full play.The legal and regulatory system is also relatively perfect to protect the interests of investors and better play the role of institutional investors.At the same time,this paper further carries on the mechanism test,finds that QFII shareholding can improve the sensitivity of management compensation performance,improve the company information environment,adjust investors’ risk assessment and investment expectation,affect the sensitivity of the company and the market,and reduce the systematic risk.Therefore,this paper believes that we should continue to encourage and support the development of QFII in our country,but at the same time,we should standardize and supervise them,and actively cultivate domestic institutional investors to guide them to learn QFII investment concepts and investment behaviors.Further reduce the risk level faced by the company.To sum up,this paper studies the positive role of QFII shareholding in reducing corporate systematic risk and idiosyncratic risk,analyzes the regulatory role of marketization degree,and discusses the possible mechanisms for QFII to affect risk.It enriches the theoretical research of QFII and corporate risk and provides theoretical basis and empirical evidence for the orderly development of risk management behavior and QFII.