Based On Behavioral Finance The Fluctuations Of The Listed Companies’ Market Value Under Irrational Investment Behavior

Traditional finance theory is built on the basis of the underlying assumptions of the rational managers and market efficiency, researching some issues related to maximizing corporate profits. But with internal and external financial environment constantly changing, the market value of listed companies will deviate from its true intrinsic value in the real capital markets, which these phenomena are abnormal fluctuations in the stock market. If these phenomena are further magnified, its ripple effect will be more intense. So in a stock market, there are some phenomena about "Small Firm Effect","calendar effects"; in some regions," the Dutch tulip craze","the South Sea Company bubble"," Mississippi bubble ","1980s, Japanese real estate and stock market bubble", our previous stock market blowout and foam or non-rational prosperity. Therefore, based on rationality and market efficiency hypothesis, the traditional financial theory can not explain the phenomena of these unusual fluctuations and the stock price of the noise factors.With the continuous development of the theory of behavioral finance, behavioral finance theory have started from the economics, finance, psychology and other fields to study on the stock market anomalies. From behavioral finance perspective, due to the existence of irrational factors and non-effectiveness of the market, the investment decisions of investors in general difficult are to following the optimal decision model, which will result in the investment of the enterprises or individuals to deviate from the predetermined direction or theory, and then lead to abnormal stock market stock prices to deviate from the true value of listed companies. From a psychological level,few behavioral finance scientists start to analyze these phenomena in the stock market, and sum up the irrational investment behavior of stock market investors, for example over-confident, non-Bayesian forecasting, loss aversion, mental set, herding and the pursuit of higher yields and so on.This paper will be based on behavioral finance theory and study on the non-rational investment of the listed company Managers and outside investors, which make the market fluctuational.For some instructions before the study, this article will only to study the management of listed companies in non-rational and irrational combination of outside investors, and only to study the negative impact of this irrational investment behavior of the fluctuations of the market value of listed companies. In the course of the study, this paper mainly used in the classical economics of asymmetric information and Panel model instead the DSSW, BSV, HS model to study the non-rational investment behavior in the modern stock market, and used GARCH model instead of the FF-3model to study listed company market value fluctuations. The empirical results show that these irrational investment behavior of listed company managers and outside investors will inevitably result in a particular industry or an enterprise of over-investment or inadequate investment, and make market allocation of resources function distorted, further leading to market non-validity to be strengthened.