Abstract
This study investigates the correlation among the three institutional investors, general individual investors, and the stock market using the multivariate GARCH model. We also analyze the effect of releasing the restriction of foreign investment. The empirical results reveal that trading behavior of foreign institutional investors holds a crucial influence on domestic dealers and general individual investors, and the counter-trading phenomenon of foreign institutional investors and domestic institutional investors is due to different investment judgments. A verification of the impulse response equation reveals institutional investors perform at a faster information transmission effect. Overall, a full opening up of foreign capital might not be as powerful as expected.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
