Study On the Relationship Between Dividend, Business Cycle, Institutional Investor and Stock Risk

[[abstract]]Dividend and business cycle are the major index for investors to make decision in Taiwan but the investors pay insufficient attention to risk. Institutional investors have more influence on stock market than before, because the trading volume of institutional investors is larger than individual investors in Taiwan. Therefore, we analyze the risk in stock market from 2008 to 2014, our samples include 200 listed companies which had dividends and institutional investors hold the stock every year. We use Standard Deviation and Beta Coefficient to measure the risk, and explore the effect of dividend, business cycle and share ratio of institution investor on risk. The results show that: (1) Dividend and the share ratio of institutional investor have significant positive effect on individual stock risk. (2)The relationship between Business cycle and individual stock risk is negative. (3) But, the effect of dividend, business cycle and share ratio of institutional investor on market risk is insignificant