| Modern Financial Theory (MFT) is facing more and more challenges after its resplendence. Investors' Herding Behavior is one of the obvious exemplification in the situations. It seems that herding is a "little" concept at the first glance, yet actually it takes wide and deep effect on the real security trader behavior and the stock market function.Firstly, Herding Behavior would be classified and analyzed thoroughly in this article, then analyses thoroughly and synthetically from the theory model, empirical study and the current situation of both at home and abroad.Secondly, the sample is the CSI300, use CSAD to research herding of our country security market, from January 1, 2006 to June 30, 2007. The study shows that the security market of our country exists faint herd behavior, each sector shows obvious difference.Thirdly, this article studies cause of herding from Psychology and Behavioral Finance. From the perspective of Behavioral Finance, herding is irrational due to security trader's psychological and cognitional error. Extend to herding of our country's security market, article analyses cause from three respects which is imbalance of the structure, policy market and unilateral market, and information asymmetry.Moreover, we study the different revelations to all participants in the security market that come from herding behavior. It can be utilized sometimes, but need be choked at most occasions. In the current situation of our country's herding, propose countermeasure and suggestion, several kinds of investment tactics of Behavioral Finance are introduced especially. It's very clear that while herding of security trader have been reduced, the security market could absorb more sufficient information and benefit the whole society better.Last but not least, the conclusion and prospect of the study of herding behavior are placed at the end of the article. Otherwise, there are more way to advance in the theory and empirical study of herding behavior. |
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