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Irrationality And Limited Rationality:An Empirical Study On The Investors' Behavior In Chinese Stock Market

Posted on:2005-09-27Degree:DoctorType:Dissertation
Country:ChinaCandidate:X D JiangFull Text:PDF
Abstract/Summary:PDF Full Text Request
Recent years, the introduction of behavioral finance has become more and more popular, but few scholars of our country applied the theories and methods of the subject to empirical study. And I am willing to be a pioneer to make some elementary attempts in this field.In 2002, I ever did some primary research on the irrational behavior of investors in Chinese stock market. That time, as most other Chinese researcher, I just paid all my attention to the factors of institutional deficientcy and ignored the factor of investors themselves. Kahneman's prospect theory and other fruits of his successors gave me a different angle to analyze the phenomena of Chinese stock market.So, in the first part of my thesis, I try to apply the theories on overconfidence to explain the long-existing phenomenon of excessive trading in Chmese stock market. And I found three important reasons: our collectivistic culture, new investors' lackage of experience and psychology difference between male and femaleon investment.My intention of the second part is to find a new tool for analysis of stock market. And what I did is to add the consideration about the invesrors' mental factors into my model. That new model will greatly increase the precision of stock price forcasting and will improve our capability to research the viarition of stock price in Chinese stock market.
Keywords/Search Tags:Overconfidence, High turnover ratio, Heuristics judgement.
PDF Full Text Request
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