Empirical Study On The Investors' Mental Accounting Behavior On The Chinese Stock Market

Nowadays the behavioral financial is increasingly becoming the focus of financial study ,among which the mental accounting has been largely applied to financial market, but many of them are based on experiment, not the actual transaction data. Our national stock market is innovative and has a shorter history compared with west mature ones, complying with some deficiencies. So utilizing the tractions data from actual market try to solve some difficulties of financial development facing us in the methods of mental accounting is important and impressive.This article has done some researches on investors'mental accounting behavior, including the following aspects:Firstly the article analyzes experientially the loss aversion of the investors of Chinese stock market in the method of the David Fielding ,and Livio Stracca(2006) .The result are that the loss aversion of Chinese investors is not as serious as foreigners which leads the author to do further research in this fieldIn the second part of this article, the author firstly apply logit model to the research of mental accounting of investors in the stock market and take advantage of the data of Chinese stock market to analyze the mental accounting behavior with statistic soft ware sas.In the third part of this article, the author modifies the method of David Fielding and Livio Stracca model and builds up a new theoretic model and simulates it , so providing a new angle of view for the research of investor's choice.The main conclusion of this article including:①about the value function of mental accounting, the author found that the dissymmetry of the response of Chinese stock investors is not obvious, but the value functions of these investors are multi-attribute. The illiquidity of stock is also a focus of investors'attention. The outcome of experiential has not found myopia loss aversion of investors.②about the dynamics of mental accounting, the choices of investors .are indeed, influenced by prior invest outcome. Specifically, the gain increases the probability of buying stock and loss decreases the probability.③about the choice bracketing, the investors treat stock index and individual stocks differently.④finally, the reference points of evaluation of investors may not be return of risk less asset and not steady.