The Irrational Research Of China's Stock Market Based On Bounded Willpower A Dissertation Submitted For The Degree Of Master

In this paper, the irrational stock market as the research object is limited to the bounded willpower of investors as a starting point.I will discuss the relationship of bounded willpower and bounded awareness,and will introduce on the market for a variety of related non-rational cognitive biases,and summarizes the market performance of non-rational theory.Firstly, the market of non-rational theory analysis its relevant content, and then with learning ways to build emotional indicators,I directly build bounded willpower to quantify the result of its limited impact of non-rational of China's listed companies 1.On this basis, I used the combination of theoretical and empirical methods of analysis and validation of the proposed point of view, mainly from the volatility of stock returns to examine test. Through the above analysis, concluded that the number of non-rational level will depend on the investors' bounded willpower in the Chinese stock market, then put forward to raising practical suggestions.This sample data in China Shanghai Stock Exchange for all A shares, using the data time for the November 1,2007 to October 31,2009, sample data from CSMAR and CCER China Securities Market Database. This paper selects the market turnover, IPO first day turnover, closed-end fund discount (premium) rates, the market volume and IPO first day of the trading volume of five indicators as the original variables, using principal component analysis BW measure of expression. Then with the Shanghai Stock Exchange a-share A stock total returns and bounded willpower to do linear regression, to get two of the regression equation.Regression equation shows that:the rate of investors'return with bounded willpower will be negatively correlated.When the investors increase their limited degree of willpower, their total return will be lower, otherwise, investors will be limited so that it will reduce the level of total return on investment increase. Therefore, this article proposed a reasonable plan investors to invest, do not easily change the investment plan, to reduce unnecessary fees to pay, thereby enhancing the yield rate of return; to exercise self-control, especially to strengthen the willpower training. More simply, it is necessary and reasonable to make the right investment decision on the need perseverance; should strengthen their knowledge of sound finance, skilled and psychology combined with a more realistic understanding of the actual process of trading.