Through The Behavioral Finance Science To Study On Our Security Market Efficiency

EMH is the most important base of the modern finance theory, but it was also given a rise to a good deal of controversy when many people agree with it. Behavior finance, traced back to 1950s, revived inl980s, is the advanced field of finance study in the Western countries at the present time. In China, the study on this aspect is also up and doing. The great significance of this theory is that, it absorbed the achievements of modem psychology study and enables the finance study based on practical supposes but not on strict and unpractical ones that modern finance theory is based on. So behavior finance ushered in a new era in finance domain.As an important constitute of socialism market economy system, security market plays an important role in the development of Chinese national economy. But we should soberly realize that this booming security market is still developing market that required consummating and standardizing. On the one hand, it represents the irrational behave of investor, such as excess speculation, police market and herd behavior. On the other hand, it represents the irrational behavior, such as highly volatile stock price and board effect. The appearance of these phenomena is the cause of market inefficiency in the final analysis. The existence of these instances becomes an obstacle to the healthy development of Chinese security market. Therefore, it is imperious and essential to realize these irrational and inefficient phenomena and disclose the cause behind it for the development and perfect of Chinese security market.Based on this, I choose Chinese security market efficiency as the object of this dissertation. Moreover, I disclose the reason and mechanism of security market efficiency in the view of behavioral finance. Relevant policy implications are presented to security market regulation agency. It is also help to build up correct investing idea and standardize investing behavior. The dissertation consists of four parts. Its main contents as followed:First of all, discussing the efficient market hypothesis (EMH) and the efficiency of Chinese security market. EMH is an important content of standard finance. It is also the theoretical foundation of security market efficiency study in standard finance. This part summarizes the theory of behavioral finance and points out the deficiencies of EMH.Secondly, expounding the growing up of behavioral finance and the challenge from behavioral finance to...