The Research On How The Reform Of Non-tradable Shares Has Influenced The Investors' Sentiment

Traditional finance has its own defects which mainly contain two points:firstly,it assumes that people's decision-making shapes on the basis of these assumptions, such as:rational anticipation,the most usefulness and so on. Secondly, the effective competition on the market means investors can fetch every chance which is created by irrational investors.Only does rational investors can survival eventually. However, the behavioral finance mostly do the research on people and so the sort of the research can take these situations into consideration.in the area of the behavioral finance, investor sentiment is very important.its definition comes from the famous scholar called "weig"(1973) who maintains that investor sentiment comes from the patial expectation of the value of assets. author thinks its definition has reflected the variable of the investor sentiment mostly.Furthermore,investor sentiment have its best value in the capital market in China and author cites four points to explain it.So author intends to do the research on the significant event-reform of non-tradable shares.in the next, author has picked out six variables which have been already studied in the academic field.How to analysize the phenomenon to view whether these variables reflect investor sentiment?By particular considering,maybe the index of Shanghai A shares is the best choice.At the same time,the graph is made full use of.Utimately,closed-end fund discount, turnover ratio and dividend premium have been chosen as the variable of investor sentiment.However,as other variables have its own features,author plans to do the research on them at one time.In the end,through graphs and tables,author comes to conclusion as follows:1, reform of non-tradable shares has raised investor sentiment;2,larger business shows different feature compared with small business;3 auther has proved some theories on behavioral finance such as Catering Theory.Finally,author points out some disadvantages in the passage and thinks about the direction of investor sentiment in the future.