Research On Behavior Of China's Security Analysts Based On Behavioral Finance

China is an emerging securities market. As important players of securities market in China, security analysts'behavior has great impact on securities market and investors. Based on behavioral finance theory, this paper carries out a systematical study on the behaviors of security analysts. The psychological and behavioral mechanism, the expectation pattern and the forecast capability of security analysts are explored, which helps financial supervisors and investors to have an objective understanding of security analysts. Meanwhile, it is helpful for security analysts to have an appropriate view of themselves. In addition, this paper is beneficial for supervisors to standardize security analysts'behavior and fulfill their function. It also has practical implication for the healthy development of securities market. The study is generalized as follows:1. The paper reviews the modern finance theory and its challenges, discusses the emergence and development of behavioral finance, and systematically summarizes the outcomes of studies on investors'behavior in behavioral finance domain. The research on behavioral finance emphasizes on the analysis of human beings'psychology and behavior. It has investigated the determinants and the changes of capital market price from a wholly new perspective. It has also successfully explained some abnormal phenomena in capital market, which prospects a broad application of behavioral finance in China's emerging securities market.2. The paper makes systematical analysis of behavior and profession of China's security analysts. First, it expounds the general situation about security analysts, and looks back to their development at home and abroad. It concludes that the emergence of security analysts is an objective requirement of securities market and has important impact on securities market. Moreover, the paper analyzes the main behaviors of China's security analysts in securities market, points out current defections and analyzes the causes of these defections. Finally, it concludes the function of China's security analysts, and indicates the profession will manifest a broad future, with developing of China's securities market.3. The paper presents empirical study on the general behaviors of China's security analysts. Forecasting behavior and stock recommendation behavior, which influence the investors and securities market greatly, are general behaviors of security analysts. Through modeling, the paper empirically analyzes the psychological and...