The Analysis Of Investors' Behavior Under Asymmetric Information

Information is very important to the Securities Business not only for it determines stock price, but also deeply influences investors'behavior. For a long time, the asymmetry of information among investors is still recognized as one of the primary issues which cause the fluctuation of Securities Marketing. As result, marketing resource distribution and function are directly impacted.Using Empirical Analysis Method, We collected the cases of the stocks manipulation through inside information, which is investigated and transacted by CSRC (China Securities Regulatory Commission). First, with the statistics method, the market response characteristics of the stock price before, during and after manipulation were analyzed. And then, with a Regression Analysis modeling of relationship between the price of a specific stock and market index, the residual of the stock is obtained. Through the variation investigation of the residual, the property of institutional investors'manipulation behavior is characterized.In this article, the relative references and theories were reviewed. In conclusion, the strategic suggestions based on Empirical Analysis Method have been proposed which would be beneficial to the acceleration of national stock marketing development and minimization of information asymmetry. The institutional investors are minor, but possess the most of capitals. Contrarily, the individual investors are major, but have less power. Institutional investors manipulate stock with their capital and information advantages. As a result, the securities market is fluctuated intensely and individual investors get profit loss.The innovation highlight in this article is the combination analysis of statistics and regression modeling by which the characteristics of stock price for the collected"black"examples were analyzed. The effect of information asymmetry among the inventors was investigated.