An Research On Herd Behavior Of Transportation-shares In Shanghai Stock Exchange (sse)

Herd behavior plays an extraordinary and important role in behavioral finance. Due to the financial academic research focus on the influence to stocking price formed by non-basic economic factors since the 90s, the impact of herding behavior on stock price has came to people's spotlight. This paper defines the concept of Herd Behavior at the beginning, then summarizes and evaluates Chinese and foreign related references through aspects of the causes for the Herd Behavior, the Herd Behavioral effects on financial market, the empirical study of Herd Behavior and etc.; then it makes use of CCK test method and introduces GARCH Statistics Method to do the empirical study about the Herd Behavior of transportation-shares in Shanghai Stock Exchange (SSE), and makes a comparative study of the Herd Behavior in all Shanghai A share. The results indicate that there isn't Herd Behavior of the transportation-shares in SSE when they are in the ascent phase; yet there is obvious Herd Behavior in the descent phase. In addition, the Herd Behavioral in transportation stocks is more obvious than the all SSE. What's more, this article analyses whether there is Herd Behavior of transportation-shares towards index of market. The results show that there isn't Herd Behavior of transportation-shares towards index of market in the period of sample, but there is when the index of market in extreme return and some subinterval of the sample. Based on the conclusions of empirical research, this essay makes a further analysis of the grounds of herd behavior which showed in transportation-shares in SSE, and proposes targeted inhibition countermeasures from several aspects as a solution:reducing the governmental direct interventions to the stock market; improving mechanism of information disclosure; cultivating mature individual investors and regularizing the conduct of institutional Investors; promoting innovations in stock market.