The Theory And Empirical Analysis About The Influence To Investors’Behaviors Caused By The Asymmetric Information In Chinese Security Market

In the security market, the information play the important role. It can not only effect the fluctuation of the price of the companies’stocks, but also deeply influence the investors’ behavior. Because our capital market doesn’t mature much as the western developed countries, asymmetry of information still recognized as one of the primary issues which cause the fluctuation of Securities Marketing, is very serious among investors. The problem of the asymmetry of information has caused the unbalance of the interests of the parties in the market, affected the efficiency of both the rule of equality and fairness and the assignment of the market resources. Hence,we will analyze how to mitigate the negative effect of the asymmetric information in our security market in the form of theoretic inference and empirical analyses. Furthermore, we conclude5methods to weaken the asymmetric information and give some advice to the government policies.Confronting with these negative influences to the investors caused by asymmetry of information, how to reduce this effect is the key issue for developing the security market well. This paper makes it as the starting point for the study that how we can solve the problem of the asymmetry of the information. Firstly, we illustrate each affect of the five methods to decrease the asymmetry of information using the theoretic inference. Secondly, we use the empirical analysis method to prove whether the five methods, which include identification, short term security, dividend, collateral and the stock owned by managers in the company, can decrease the negative influences. We collect the financial figures of the965companies in the capital market from2004to2006, and then utilize the regression analysis modeling to analyze the relationship of the five methods and asymmetry of information.This article can be divided into five chapters. In the first chapter, we mainly introduce the background of study, the meaning of the study and the methods of the study. In the second chapter, we detail the preceding papers about this issue in which the authors get what conclusion to solve the problem of the asymmetry of information. In the third chapter, we utilize the mathematic model to analyze the relationship between the five kind of the message transmission and minimization of the asymmetry of information. In the fourth chapter, we make some empirical analyses using the figures of companies in the security market.In the end, according to the conclusions we get from the previous chapters, we give some advices about how to make those measures more efficient. These advices include establishing the better internal control of the companies and the perfect system of scrutiny from government and regulation. Only in this way can the environment of the security market become better and better.The innovation highlight in this article is making the theoretic analysis about how the message transmission to mitigate the affect of the asymmetry of information in the perspective of the investors and establish the mathematic model to prove whether these messages can distinguish the different categories of the enterprises. Subsequently, we choose some companies in our security market as the samples to make some empirical analyses about the conclusion deduced from theoretic inference. In addition, we also make some analyses about which method can reduce the negative affect of asymmetry of information efficiently.