| In recent year，lots of abnormal phenomenons indicate that there are manyirrational phenomenon in stock market. Herding behavior as one of the behavioralfinance is a typical case. Herding behavior is a phenomenon which the people whofollow the others. Pseudo herding is rational react for the information. But thegenuine herding is a irrational phenomenon which the people abandon their owninformation to follow the others. Genuine herding increase the stock market risk.A serious problem in the past researches on herding behavior in stock market isthat it fails to distinguish genuine herding and genuine herding. Thus we use CCKindex and a new beta herding index based on the sentiment to detect the Chinese GEM.Our result indicate that herding behavior exists in the Chinese GEM. Both the indexdetects the herding behavior at the same time. And we found that there are moreserious herding behavior in the bear market than in the bull market. It dicate thatChinese investor more hate the loss.According the results, we propose several suggestions. Firstly, strengthen theinformation disclosure；Secondly, change the salary structure of fund manager；Thirdly, define the government′s position；And the last, strengthen the education ofinvestors. |
