Stocks Institutional Investors, Non-rational Behavior And Rational Economic Man Is Thinking

In largely due to its use of the "economic man's rationality " basis, the main stream of modern finance with the logic and mathematical reasoning, called the crown of Social Sciences, is different from the other social sciences. But in practice, there are many Phenomena which main stream financial theories can not explain, such as : long-term reversal, momentum effect, the equity premium puzzle, the mystery of volatility, the return scale of stock effect. Faced with these abnormal financial phenomena and non-rational behavior of investors, how people look at the economic rationality and rational paradigm?It has the theoretical significance for the development of Economic theory. There are five chapters in this paper.Chapter I is "economic man's rationality and rational paradigm definition and evolution." The section details on the economic man's rationality and rational paradigm definition, theory sources and evolution.Chapter II is " the empirical study on the anchoring heuristic deviations of institutional investors in Chinese capital markets." started with the problems of rational economic man in explaining the economic life and behaviors, the section find our institutional investors have obvious anchoring heuristic errors in the market daily trend forecast by the empirical testing, and its type is expected to continue. But with the expected time interval expansion, the institutional investors are expected to show more cautious.Chapter III is " causes for the irrational behavior of investors in Chinese capital markets." The part analyses the causes for the irrational behavior of investors in Chinese capital markets. Divide them into three areas : first, the government regulatory failures. Secondly, market failures. Third, investors psychological bias.Chapter IV is " a correct view of rational economic man and rational paradigm under the impact of non-rational behavior of investors." The part mainly states that the "economic" and "rational" will no longer be seen as the reality of the existencet, but as a hypothetical existence of the establishment of economic science theory is an indispensable tool for the theoretical thinking.Finally, the paper concluded that with the economic development towards continuously improving the rational analysis, theory is also used in the actual process of constantly revising assumptions. Therefore, I believe that the modern financial theory will be more practical in the future.