Emperical Study On The Effects Of Investors' Moods On Their Behaviors

Behavioral finance is a new interdisciplinary subject developed in 1950', which combines the studies in psychology, science of decision-making, classic economics and finance. The basic ideas of behavioral finance is on the opposite of that of mathematical finance:traditional mathematical finance held the viewpoint that investors were rational and market was effective; however, behavioral finance takes the idea that investors are irrational and market is ineffective. Combined with recognitive psychology, behavioral finance takes investment as a psychological process, including:recognition of market, emotion, determination and study on how investors' thought control their behavior.The current study in the field of behavioral finance mainly is done by two kind of researchers:psychologists, who study the common people's moods and behavior from the perspectives of sociology, psychology and experimental economics, and behavioral financiers, who study investors'behaviors affected by different moods from the perspectives of investors' moods and the characteristic of investors' behaviors. With the advance of the theory of behavioral fiance, more and more importance is being attached to the effects of investors'moods on market.The paper takes investors' moods as the subject of research, and expores the genneral rules, not the specific forms of their moods. Firstly, invesrtors do not usually make Bayesian inference and get posterior probabilities and make unbiased decision after receiving information but lower the complexity of information by simplifying, mental account modeling, availability of information, omission of information, etc. and make decisions afterwards. Secondly, by questionaire, the author makes an emperical study on investors'behaviors such as, speculativeness, avoidance of risks, risk preference, overtrading, on the basis of the study on overconfidence in stock-holding, judgement of the trend of stock, stock-selling, investal profits, ect and on the investors' emotional-affected moods in emotional influence, moods reation, self-control. The result indicates that there exists overconfidence in stock-holding, judgement of the trend of stock, stock-selling, investal profits and investors'emotional-affected moods in emotional influence, moods reation, self-control. However, the overconfidence in stock-selling is not significant, there is no emotional reation. There exist peculativeness and overtrading, and significant avoidance of risks, and risk preference. There is significant difference between male investors and female investors in investors' overconfidence, investors'moods and investors' behaviors such as, speculativeness, avoidance of risks, risk preference, overtrading. There is no significant difference in investors' spculativeness between male and female investors. Investors' behavior is mainly risk-avoiding under the effect of overconfidence in stock-holding, judgement of the trend of stock, stock-selling, investal profits, and the effect of investors' emotional-affected moods in emotional influence, moods reation, self-control.