| There is a volatile phenomenon in the stock market in China, the management proposed a strategy to encourage institutional investors to curb market fluctuation. The securities investment fund in China has become to an important force in stock market because of this policy. Therefore, the herd behavior in China securities investment fund has been highly concerned. There are many scholars use LSV model to study herd behavior in China securities investment fund and have a unanimous conclusion. However, the conclusion about the influence of the herd behavior of securities investment fund to the fluctuations of stock market is still different in different people. Then, to study the influence of herd behavior of securities investment fund to the fluctuations of stock market has theoretical and practical significance to the development of our domestic stock market.In this article, firstly, the investment behavior and the problem of China securities investment fund and the volatility characteristics of stock market are analyzed. Then, the LSV model is used to measure the herd behavior of fund based on the data of ten heavy warehouse shares in stock market since the year of2006to2011. An empirical analysis is made according to the result of measurement and the characteristics of stock market.The conclusion of this research is that there is a significant herd behavior in China securities fund and the relationship between the herd behavior of China securities fund and stock market fluctuation is positive. Finally, combining the relate research, this article proposes some suggestions to improve the development of China securities fund and the investment environment of China stock market in the view of promote the information transparency, perfect the do empty trading system of stock market, improve the performance of listed companies, enhance the share out bonus mechanism of listed company, create effective supervision system and strengthen the development of fund itself. |
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