Herd Behavioral Research On The Chinese Security Investment Funds In

Herding behavior is one of baffling phenomenon that is called"Market Anomaly"on financial market. The traditional financial theories which base on"Rational Investor"hypothesis can't give it a reasonable explanation. The naissance of behavioral finance points out anther approach for herding behavior study so that it has become one of important branches of modern behavioral finance. As a kind of universal phenomena, herding behavior has been exerting great impact on stock market, especially on the new Chinese stock market brought out in economical transform period. With expand of the scale of securities investment funds, its investment behavior play a more and more important role in Chinese stock market. Herding behavior is a great concern in funds investment behavior research.Basing on a systematical review of theoretical and empirical literatures about investment funds'herding on financial markets, the paper applies the LSV testing method to realistic circumstance of China and makes whole and classificatory empirical test on Chinese securities investment funds'herding. The empirical result shows: Herd behavior of funds exists statistically in Chinese stock market. The degree of funds'herding shows certain regularity in terms of the scale of circulating stock and the former yield of stock sort. Dividing the whole into open-ended funds and close-ended funds, the test shows herding exists statistically in both of them and the former has a statistically larger herding degree.The paper is divided into five chapters. The first chapter puts forward the problem and points out the theoretical and realistic significance of research on herding behavior of securities investment funds in Chinese stock market. In addition to, it introduces the structure and main content of this paper. The second chapter is about the review of herding behavior theory. After presenting the conception and classification of herding behavior, it casts back the theoretical research results. The third chapter is a review of characters of securities investment funds and of Chinese security market. The fourth chapter which is the key part of this paper is about empirical study on herding behavior of securities investment funds in Chinese stock market. It applies statistic testing method to make whole and classificatory empirical test on Chinese securities investment funds'herding and attains to a series of conclusions. The fifth chapter is about the cause and trend analysis of Chinese securities investment funds'herding, and the policy suggestions put forward. The last chapter is about the retrospect and prospect of the whole paper.