China Securities Investment Funds "herd Behavior" And Its Impact On Stock Price Volatility

Securities investment fund has achieved comparatively great development in China since the 1990' s. As an institutional investor, securities investment fund plays a significant role in security market. However, it also has an irrational side. Herd Behavior is one kind of its irrational acts. Herd Behavior in securities investment fund involving many investment subjects has a very big influence on market stability and efficiency. In addition, it' s closely connected with financial crisis. So the issue warrants investigating and studying by the academic circles, the investment communily and the financial supervisory departments.In view of the above-mentioned knowledge and comprehension, this thesis is based on summarizing the previous studies of Herd Behavior. Then it uses the LSV model to empirically testify if China' s securities investment fund has marked Herd Behavior. Afterwards, on the above foundation, the thesis empirically studies the influence of Herding Behavior on the volatility of stock price. Meanwhile, through a vast amount of document-reading, it gives a penetrating analysis of the results and raises some countermeasures and suggestions with relatively great value.The whole text consists of six chapters.Chapter I: To put forward the background, significance, purpose, method and progress of studies about this text.Chapter II: To expound the concept and traits of securities investment fund, along with the reasons bringing about Herd Behavior in securities investment fund.Chapter III: To discuss the methods of studying Herd Behavior and the results of previous studies about Herd Behavior.Chapter IV: To empirically testify if securities investment fund in China has marked Herd Behavior, then on this basis to study Herd Behaviorin securities investment fund by cluster research of the listed companies.Chapter V: To empirically study the influence of Herd Behavior in China' s securities investment fund upon the volatility of stock price.Chapter VI: To analyze and discuss the study results, then to point out the study direction later.