Dissertation > Excellent graduate degree dissertation topics show

The Influence of Liquidity Constraints on Institutional Investors’ Investment Behavior

Author: YangZuoZuo
Tutor: GengZhiMin
School: Zhengzhou University
Course: Finance
Keywords: Institutional investors Liquidity constraints Investment behavior
CLC: F832.5
Type: Master's thesis
Year: 2012
Downloads: 43
Quote: 0
Read: Download Dissertation


At present, the investment behavior of institutional investors in China are mostly based on the collective investment behavior of the principal-agent relationship, which determines the flow of funds of institutional investors are uncertainty, and it will make their own investment behavior subject to the liquidity constraints at capital level. In order to better respond to the demand of the capaital expenditure that may arise at any time, institutional investors will be more to the pursuit of short-term return on investment, and actively or passively change their original investment plans and strategies. The focus of this paper is how liquidity constraints affect the investment behavior of institutional investors, as well as the characteristics of the investment behavior of institutional investors based on the different markets.This paper first summed up the concept of different levels of liquidity, and then gives the definition of the liquidity constraints for institutional investors and analysis of the formation mechanism of the institutional investors of liquidity constraints. Subsequently, based on the perspective of behavioral finance, we discusses the influence of liquidity constraints for institution investors" investment behavior in three aspects. At the mean time, we analyze the characteristics of the institutional investors’ investment behavior in both bull and bear market conditions, drawing the following conclusion:In the bull market, institutional investors who based on the liquidity constraints will implement the reversal behavior to suppress the stock price, making it possible to conduct the next round of momentum behavior to push up the stock price and make a profit. They will repeat the process to perform band operations and adjust positions. Ultimately, the diaposition effect will be formed. In the bear market, institutional investors who based on the liquidity constraints will still constantly repeated the reversal behavior and momentum behavior to condect the band operation and adjust positions. At the same time, institutional investors will cooperate with each other, and they will also play the predatory trading considering the peer competition and performance ranking pressure. In addition, this paper elaborate the "predatory trading" practices between the institutional investors who based on the liqudity constraints by constructing a mathematical model, and use the empirical analysis method futher confirmed the conclusions of the theoretical part. Finally, this paper proposes some policy recommendations aimed at strengthening the supervision of institutional investors. improving the institutional investors’ liquidity risk manamement level, cultivating the comprehensive and rational institutional investors, and promoting the healthy development of our capital market.

Related Dissertations

  1. Family Education in Poor Rural Areas of Investment Behavior,G78
  2. Mechanism About Preferential Policies’ on Investment Behavior of the Agricultural Products Processing Listed Companies,F832.51
  3. An Empirical Study of the impact of institutional investors holdings factors,F224
  4. The Research on Equity Management of Corporate Governance by Institutional Investors’ Participation (e.g. S Company),F276.6
  5. Empirical studies of the financing structure of institutional investors holding listed companies,F224
  6. Research on the Relationship between the Institutional Ownership and Accounting Information Quality,F224
  7. The Research on the Relationship between the Institutional Investors Shareholdings and Cash Dividends,F832.51;F224
  8. Empirical Study of the Relationship between the Institutional Investor Behavior and Stock Price,F832.51;F224
  9. Correlation Study on Institutional Investors and Corporate Performance,F832.51;F224
  10. An Empirical Analysis of Investor Sentiment and Investment Behavior of Listed Companies,F832.51;F224
  11. Study of Institutional Relationship between Institutional Holdings and Cash Dividend Policy,F224
  12. Institutional Investors’ Behavior and Secrities’ Abnormal Returns Study,F832.51;F224
  13. Chinese institutional investor sentiment and market returns Empirical Study of the Relationship,F224
  14. Legal Research on China’s Institutional Investors Participating in Corporate Governance,F832.51
  15. Institutional ownership for small and medium investor protection impact study,F832.51;F224
  16. Optimize the structure of China's agricultural investment entities,F323.9
  17. Investor sentiment on corporate investment behavior research,F276.6
  18. A Study on the Constraints of Rural Consumer Credit,F224
  19. The Research on the Institutional Investors’s Influence to the Information Disclosure Quality of the Listed Company,F832.51;F224
  20. Enterprise Income Tax Reform, the Change of Actual Tax Burden, and Enterprises Investment Behavior Difference,F275
  21. The Effect of Institutional Investor Activism to the Capital Market Efficiency,F832.51

CLC: > Economic > Fiscal, monetary > Finance, banking > China's financial,banking > Financial market
© 2012 www.DissertationTopic.Net  Mobile