Using the open-end funds as the study object and applying the cross-section regression and panel regression analysis, the paper makes an empirical analysis of the relationship between the behavior of institutional holdings and the stock market's stability under different market environments. The results indicate that funds holdings have the function to stabilize the stock market in general. Further analysis shows that, in the bear market, funds holdings help reduce fluctuation and play a great role in the stability of stock market, the role is stronger along with the increase of downward pressure; however, in the bull market, funds holdings will arouse risk and deepen volatility of the market, go against the stock market's stability.
展开▼
