Keywords
stock price informativeness, institutional investor network, institutional investor clique, information flowa
Abstract
By extracting the cliques in the institutional investor network,we study the influence of heavy holdings by institutional investor cliques on stock price informativeness and the internal mechanism of the influence in this paper.The results of the study show that institutional investor cliques will choose more valuable stocks.The higher shareholding of institutional investors cliques,the more negatively correlated with stock price synchronization.The efficient information flow within the investor clique is that institutional investor groups is one of the reasons why institutional investor groups can affect stock price synchronization.The above results are still robust after replacing the explanatory variables and PSM control endogeneity.The research provides a new perspective and basis for individual investors to choose stocks,institutional investors to develop orderly and establish an effective capital market.
DOI
10.16315/j.stm.2020.06.012
Recommended Citation
CHENG, Qian and WANG, Zhao-hui
(2020)
"Group ownership of institutional investors and information content of stock price,"
Journal of Science and Technology Management: Vol. 22:
Iss.
6, Article 12.
DOI: 10.16315/j.stm.2020.06.012
Available at:
https://jstm.researchcommons.org/journal/vol22/iss6/12
