comparative study on the impacts of institutional and individual investor on security investment risk比较研究的机构和个人投资者对安全投资风险的影响.pdfVIP

Journal of Service Science and Management, 2011, 4, 118-124 doi:10.4236/jssm.2011.42015 Published Online June 2011 (http://www.SciRP.org/journal/jssm) Comparative Study on the Impacts of Institutional and Individual Investor on Security Investment Risk Zunhuan Shen, Dong Cao School of Economics and Management, Xidian University, Xi’an, China. Email: zunsh03@126.com Received December 22nd, 2010; revised March 6th, 2011; accepted April 6th, 2011. ABSTRACT Institutional investor is supposed to be more powerful than individual investor from the perspectives of regularity au- thority and scholar, but the results are mixed. Using the data of listed company in China, the paper presents a com- parative study on the impacts of institutional investor and individual investor on investment risk . It shows that the scale and ownership of institutional investor have negative impacts on investment risk significantly, but the scale and owner- ship of individual investor have positive impacts on investment risk, which implies institutional investor has the effects to reduce investment risk comparing with individual investor. Therefore, developing institutional investor and reducing the scale of individual inventor is important for the stability of security market. Keywords: Corporate Governance, Institutional Investor, Individual Investor, Information Disclosure , Investment Risk 1. Introduction tional investor is positive related with the fluctuation and investment risk. On the other hand, literature argues that The separation of ownership and operation of corporation institutional investor is prudent [8], and the ownership of results in the conflict of its principal and agent, and there