Empirical Study Of Herding In China's Second Board Market

The behavior of rational individual investors based on traditional financial theory is to maximize their profit. As the development of behavioral financial study, the academia began to pay their attention to empirical analysis of the investment strategies and conducts. The most important point they had found is that the feelings and personality of human beings can influence the behavior frequently, which may lead them to errors. People don't always make rational decisions, just by their own intrinsic movements and the environmental interference from the outside world.In fact, the phenomena that herding effect does exist in Chinese stock market is such a kind of irrational behavior. When the situation that information asymmetric happens in the market. The investors are faced with uncertain, in this environment, how would people make their choice, To take their own strategy or to follow others'behavior? The public opinions, the idea of overwhelming majority in another word, can dominate individuals sometimes, or in most situations.In China, the second board market and venture capital market attracted much attention in recent years, the SME financing pool features that can help technology industry made a leap of pleasure. However, for our investors, the second board is a new market, and the board to take the same trading market, the availability of income, or need to adjust the investment characteristics of this market means that this is the most serious problem.This paper is divided into six chapters, and three parts. The first chapter introduces the background, the second and third chapters discuss the theoretical part of this paper, Chapter 4,Chapter 5 and Chapter 6 are the empirical related contents. Details of each chapter describe the introduction of the herding and the characteristics of herding effect, which, set the tone for the full text, has what kind of impact on the second board market. Then introduce the domestic and foreign scholars prior to the main research results, which highlighted Wermers, Christie and Huang and other research results, their theoretical and empirical methods are also run through this paper.