Research On The Influence Of AQI On Stock Market

With the change of times,the financial market has more and more differentvisions which cannot be explained by the standard finance theory based on the rational assumption of investors.With the rise of behavioral finance,investors’ limited rational theory has been widely proved by more research and investment practice.Behavioral finance researchers,on the one hand,to dig the person’s psychology and behavior influence factors,such as weather,sunshine time,amount of cloud cover,air disaster,earthquake and so on will influence people’s psychological and emotional,which affects people’s expectations of future economic conditions and the judgment.On the other hand,the scholars also gradually to test how limited rational behavior is reflected in the financial markets,such as stock price fluctuations,or the stock market long-term value deviation.In this paper,AQI is used as a measure of atmospheric quality.Firstly,a multivariate linear regression model is established by referring to domestic and foreign literatures.The correlation between atmospheric quality and stock market rate,stock market volatility and stock market turnover rate is analyzed,and the stock market system is further established.Through granger test,the interaction mechanism of the stock market is analyzed,and the influence path of air quality on the stock market is derived.There are three main sections: the literature review,the theory foundation,and the empirical test.In the chapter of literature review,this paper reviews the research history of Chinese and foreign scholars from the perspective of financial investors’ limited rationality,the climate environmental factors and investor sentiment,as well as the atmospheric quality and other environmental indicators and the stock market.In the chapter of theoretical foundation,this paper first describes the influence path of atmospheric quality on the limited rational behavior of investors,which is specific to two paths,namely,local and off-site paths.In these two paths,the investors who participate in the market will be affected in different ways when theIV atmosphere is fluctuating and changing,and ultimately making their own investments.Secondly,this paper summarizes the stock market reaction to the limited rational behavior of investors.It’s a reference to both domestic and foreign literature and the stock market indices that are most studied,and in addition to the stock market returns,the turnover rate and the volatility rate are two of the most popular indicators.Turnover rate is a direct response index of investor behavior,while volatility as disturbance response index value,return on the stock market is more a reflection of the market value is due to investors’ limited rational behavior disturbance or deviation.We tried to through the three index specified air quality on the role of the stock market,to explore whether the effects of investors’ limited rational behavior is not random factors,finally reflected in the stock market.In the chapter of empirical research,the selection of data is introduced.Brought together the most densely populated on the one hand,due to the Shanghai stocks investors and securities companies,business departments,2015-2017,Shanghai business department of share trading accounts for over 17% of the total in China and is trading amount of the largest city,so this article think the air quality in Shanghai as a single variable;,on the other hand,is January 5,2015 AQI data to launch the first working day of the new standards,therefore this article selects January 5,2015 to December 29,2017,the atmospheric degrees data in Shanghai and the Shanghai composite index returns,turnover rate,degree of volatility,data as the research sample.Then,this paper was carried out on the sample data sorting and inspection,build multivariate linear regression equation,checking the quality of atmosphere and return on the stock market,stock market volatility,the correlation of stock market turnover rate;Furthermore,the stock market system is further constructed to analyze and explore the interaction of each variable in the system and the conduction mode of the variables in the system.Finally,it is concluded that atmospheric quality can be used as a variable to explain the characteristics of stock market.The influence of air quality on investor sentiment,and the perturbation of the limited rational behavior of investors,can finally be reflected in the stock market.Master air quality to make the stock marketare more likely to achieve hand rate and low volatility,and the air pollution may lead investors to increase in investment agreement,cause the stock market attitudes and expectations,great changes have taken place will increase the risk of the stock market.