"Brand Effect" And The Stock Investment Strategy

Fama(1965) put forward the famous theory of efficient market hypothesis.Because of its intuitive meaning of the theory and practice, many scholars at home and abroad have been done a lot of empirical research. This provides a more in-depth understanding of the stock market, as well as provides a better choice of investment strategy theoretically and empirically. Modern financial theory believes that the stock market is efficient, therefore, the stock price is unpredictable and investors can not continuous get excess profits in the stock market useing some information and investment strategies(Only receive an average profit). With the the emergence of a variety of "anomalies"( According to efficient market hypothesis, if the stock market is valid, there will be no excess revenue-generating, If the phenomenon of excess proceeds, it is Effective non-market, This phenomenon known as "anomalies".), the effectiveness of market is questioned. classical financial theory of the "assumption rational people" and "efficient marke thypothesis" increasingly exposed the shortcomings. To individual behavior, the center for the psychological study of the content of behavioral finance theory maturity, and described the phenomenon that the traditional financial theories can not explain.The article yield of the specific analysis useing the text related to samples of China's SSE Composite Index stock. Prove The existence of China's securities market "brand effect" of the phenomenathe useing quantitative analysis method(That is, to invest in a "well-known trademarks in China" brand of stock will receive the proceeds.). The text explained the reasons for the formation of "brand effect" On China's stock market from the perspective of behavioral finance.This article concluded that China's stock market is currently a non-effective. At least in some areas this is the case. The Cause of the result is the behavior of investors.According to efficient market hypothesis, if the stock market is valid, there will be no excess revenue-generating, If the phenomenon of excess proceeds, it is Effective non-market, This phenomenon known as "anomalies". For the corresponding non-validity of the stock market,we can make the appropriate investment strategy for stocks. However, the use of the investment strategy there is no reliable means of uniform, In this paper, it proposes the corresponding investment strategy for investors based on empirical results.