The Research On Herd Behavior In China's Growth Enterprise Market

"Herd Behavior"in the securities market is a special irrational behavior. It makes the stock price seriously deviate from stock value and engenders stock foam. Meanwhile, it increases the system risk of stock market. It has very heavy influence on the stability and efficiency of stock market. Otherwise, there are relations with the stock crisis too. Considering the present situation, our research on Herd Behavior in China's Growth Enterprise Market that has a high risk than Main-Board Market is meaningful for the theory and practice。Firstly the paper reviews the developmental process of the Growth Enterprise Market and introduces the Growth Enterprise Market of the main elements and meaning. Secondly it is to conduct a theoretical foundation of Herd Behavior. Thirdly it demonstrative analysis use CKK model by econometrics analysis tool. Basing on the sample stock of Growth Enterprise Market for studying sample, it author conduct empirical test on the non-liner relation between CSAD (Cross-Sectional Absolute Deviation) and the market portfolio returns to judge whether the herd behavior in the Growth Enterprise Market is remarkable. According to the empirical analysis, author finds, certain herd behavior exists on Growth Enterprise Market. On brief analysis to the some simple reasons of the herd behavior are government over intervention,information disclosure falsely and irregular overall market. Finally, in the Growth Enterprise Market, some suggestions of tighten market supervision and standardizing the investors are proposed to how to control the herd behavior.