Based on the exhaustive macroscopic market structure date, the paper researched the correlation between market volatility and institutional investors By using the date which exceeded former observation,combining with appropriate empirical method, the paper revealed the correlation between the market volatility and institutional investors more deeply, and got some important conclusions: The volatility of the institutional stockholding ratio was the main source of index volatility Among the three market structure parameters, institutional stockholding ratio had significant effect on other market structure parameters In our research, the volatility of the institutional investor was the main source of market volatility Institutional investor's diversity development and reform in market standard should be put more important by policy-maker in the future

Influence of Institutional Investor on the Volatility of Stock Market——Based on Research into the Topview Data

The paper studies institutional investors' preference for the fair-value-based measurement method and the relationship between institutional investors' behaviors and market volatility.It also explores the fair-value-based measurement method and the effects of fair-value-based profit measurement and institutional transactions on market volatility.The results show that the institutions show an evasive attitude to the fair-value-based assets measurement.The profits measured by fair value smooth the market volatility,but the stock-holding and transactions of institutional investors intensify the market volatility,which are consistent with the explanation of the short-horizon and herd behaviors of funds in China.The research conclusions are beneficial to the spreading of the fair-value-based measurement and the restriction on the speculating behaviors of institutional investors.

Institutional Investors,Fair Value and Market Volatility:Empirical Evidence from the Panel Data of A-share Stock Market in China

From the perspective of the mediation effect, this paper investigates whether institutional investors adjust their portfolios according to the listed companies earnings surprise. We find that the portfolio adjustments by institutional investors exert the mediation effect on the relationship between earnings surprise and stock price volatility. Institutional investors actively manage their portfolios in the rising market, which induces the stock price volatility; while they less adjust their portfolio in the falling market, the volatility declines. This paper helps understand the role of institutional investors in the fluctuation of stock prices, and provides a new basis for decision making of regulatory administration.

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Wang Chang

Papers

Earnings Surprise, Portfolio Inertia and Stock Price Volatility