Institutional investor cliques and stock price efficiency: Evidence from China

IF 2.1 2区经济学 Q2 BUSINESS, FINANCE

Journal of Financial Markets Pub Date : 2024-11-01 DOI:10.1016/j.finmar.2024.100935

Xiaodong Guo , Caiji Pang , Zheng Qiao , Xiangkun Yao

引用次数: 0

Abstract

We investigate the impact of coordinating groups of institutional investors (cliques) on stock price efficiency in China. Employing the Louvain algorithm, we identify institutional investor cliques based on their holding networks and observe strongly correlated trading behaviors among clique members. Our baseline findings document that institutional investor clique ownership impedes stock price efficiency. We also provide a potential mechanism suggesting that this impediment effect arises from reduced information acquisition by clique members. Our additional analyses suggest that the inefficient stock prices induced by institutional cliques may exacerbate stock bubbles and increase the stock price crash risk.

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机构投资者小团体与股票价格效率：来自中国的证据

我们研究了中国机构投资者协调群体（小集团）对股价效率的影响。我们运用鲁汶算法，根据机构投资者的持股网络识别出机构投资者集团，并观察到集团成员之间存在强相关性的交易行为。我们的基本研究结果表明，机构投资者小团体持股阻碍了股价效率。我们还提供了一种潜在机制，表明这种阻碍效应源于小集团成员信息获取能力的下降。我们的补充分析表明，机构小集团导致的低效股价可能会加剧股票泡沫，增加股价暴跌风险。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Financial Markets BUSINESS, FINANCE-

CiteScore

3.40

自引率

3.60%

发文量

期刊介绍： The Journal of Financial Markets publishes high quality original research on applied and theoretical issues related to securities trading and pricing. Area of coverage includes the analysis and design of trading mechanisms, optimal order placement strategies, the role of information in securities markets, financial intermediation as it relates to securities investments - for example, the structure of brokerage and mutual fund industries, and analyses of short and long run horizon price behaviour. The journal strives to maintain a balance between theoretical and empirical work, and aims to provide prompt and constructive reviews to paper submitters.