The Split Share Structure Reform And Investor Behavior

Share segmentation is a unique trait of Chinese stock market, referring to two types of stocks, namely illiquid share and liquid share, making up a market system in which the same share is discriminated in price and right. The special phenomenon is due to the transformation of economic system during which Chinese stock market initiated.With the deepening of the share segmentation reformation, a series of new issues occurred, among which investment behavior has drawn a lot of attentions. Investment behavior study is the frontier in modern security research. A lot of phenomenon that can't be explained by the traditional approaches is closely related to the investment behavior. In this way conclusion could be made that it makes sense both to theory innovation and to practice instruction.In this paper the issue of investment behavior is discussed in the background of security market during share segmentation period. Taking investment behavior as the main line, we analyzed the specific performance and the cause systematically, and on this base advices are given to the investors. In this paper game theory and behavior finance approach are combined to direct the empirical analysis of investment behavior during share segmentation reformation. The paper could be divided into two parts. In the first part, optimal decision-making behavior is selected by game analysis to consideration scheme negotiation, classed voting of liquid share holders, and the information acquisition and use of two kinds of liquid share holders (organization share-holder and small and medium investors). Through the analysis, issues in the share segmentation reformation policies, such as the protection of small and medium investors, tend to be distinct. The protection of small and medium investors could be set as the standard to evaluate whether the reformation is successful or not. Furthermore, suggestions are given on how to solve these problems. In the latter part, behavior finance approach is employed to judge if there is herding behavior among the investors during the share segmentation reformation. And case approach is employed to analyze the influence of share segmentation reformation to investment behavior. In this part influence of the amount of consideration, inside trade and risk to investment behavior, and the cause-and-result mechanism is analyzed. In the ending part of the paper investment behavior in post-share-segmentation era is prospected. And suggestions are given on how to transfer of investment theory and practice to adapt to the future international security market.