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The mechanism of institutional ownership volatility on stock price deviation

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  • Xiang, Weiming
  • Liu, Liping

Abstract

This paper examines the role of institutional ownership volatility in contributing to stock price deviation using data from China's A-share market between 2002 and 2023. The findings reveal that institutional ownership volatility has a positive effect on stock price deviation. This widening effect of institutional ownership volatility on stock price deviation operates through idiosyncratic risk. Furthermore, the effect of institutional ownership volatility on stock price deviation is more pronounced for private enterprises.

Suggested Citation

  • Xiang, Weiming & Liu, Liping, 2025. "The mechanism of institutional ownership volatility on stock price deviation," Finance Research Letters, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:finlet:v:80:y:2025:i:c:s154461232500621x
    DOI: 10.1016/j.frl.2025.107360
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    References listed on IDEAS

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