Research on the influence of institutional investor shareholding on stock price fluctuation

• 1、LiaoNing Technical University

Abstract：In recent years, with the encouragement and support of government policies, China\'s institutional investors have been developing rapidly. And gradually became an important role in the stability of the stock market. The strength of institutional investors continues to improve, and the types and proportion are gradually increasing. However, despite the rapid development of institutional investors, the volatility of China\'s stock market is still very large, which also causes people to review and discuss whether it can really play a role in stabilizing the market. This paper first reviews the relevant literature at home and abroad, and then elaborates the theoretical basis and influence mechanism of institutional investors on stock price fluctuations. On this basis, the paper studies the shareholding and stock price fluctuation of institutional investors, and uses the quarterly data of A-share market from 2010 to 2021 for empirical research. The results show that the higher the proportion of institutional investors, the greater the volatility of stock prices. In addition, under the positive adjustment of investor sentiment, the influence of institutional investors\' shareholding on stock price volatility will be further strengthened. At the same time, the impact of institutional investors on stock price fluctuations is also different under different types and different market environments.

Keywords： institutional investors shareholding ratio share price volatility moderating effect investor sentimen