An Empirical Research On The Herding Behavior Of Securities Investment Funds In China

Herding behavior is a common phenomenon in the stock market ,especially in emerging markets such as China is more prevalent. On which herding behavior plays positive or negative role in the market, the parties have different points. However, according the fact of our country, Herding Behavior is harmful to the stability of the market. How serious herding behavior has in China's securities market and how it change the stock price, It is the contents of this paper.The paper give research on the herding behavior of investment fund, the text is divided into three parts: takes a systematic look at the theories, empirical studies of herding behavior and raises some countermeasures . First,the we will takes a systematic look at the theories of herding behavior, including of the definitions, characteristics, classification, mechanism and the impact on the stock market, and empirical research methods will be expounded, at the same time its advantages and disadvantages would be pointed out. Second, take the data after share-reform as sample, respectively according to the number of investment funds, transactions direction , their industry and the size of company, the paper will give empirical analysis on the herding behavior of investment fund, and analysis of the Fund's trading strategy through over-demand, as well as the impact of the herding behavior on the stock market. Finally, the paper analysis on the factors of the external impact to the herding behavior of investment funds ,and proposed measures and suggestions.By empirical analysis, the conclusions of investment funds in our country are: 1, Herding behavior is serious, but slightly decreased than before share-reform. 2, there was a significant positive-feedback transactions. 3, Herding Behavior impact the share price through excess demands.Amended the Herding of empirical research model - SDH model, which is important and meaningful. The paper get a comprehensive, systematic and in-depth exposition and analysis on Herding of theoretical and empirical.