The Evolutionary Game Analysis Of Stock Market Herd Behavior In Information Asymmetry

Western economists compared the securities market to the "barometer" of the economic market, and China's securities market has been developing for about 20 years and now become an important part of China's economic market. In recent years, China's stock market turmoil, the ups and downs attracted more and more ordinary people to join the stock market boom, therefore, the herd behavior came into the picture, and the problems that herd behavior caused such as stock market bubbles can not be ignored.For China's securities market, on the basis of the performance and influence of information asymmetry, the definition and classification of herd behavior was outlined in this thesis. Firstly, this thesis introduced a few main research models, which were used to inspect the existence of herd behavior in stock market by using statistical methods; Secondly, this thesis analyzed the tri-game equilibrium strategies among the listed company, government regulators and investors,which were the three main body of stock market, and then the evolutionary game between large and small shareholders, the evolutionary game between equity managers were mainly discussed to analyze the herd behavior. The innovation of the thesis is that for a listed company, whose share prices trending higher, this thesis established the evolutionary game model between large and small shareholders with the small shareholder's risk attitude factors added, and found that herd behavior in the securities market was associated with the risk attitude of small shareholders, when the small shareholders is not risk-aversion, following the big shareholder's decision can maximize their interests. Also establishing the dynamic evolutionary game model between equity managers, and found that the first move managers' optimal strategy was to use the high cost price for the target company information, and the later action managers observed the signal of fist move managers spent high cost to obtain information, and then choose to follow can maximize their interests. Finally, the thesis took the two stocks' day K line graph data in 2015 as example, which shows intuitionally that herd behavior did exist in the stock market, and in view of the model parameter analysis, several suggestions were given to avoid the herd behavior in the securities market, we hope the results can provide certain reference value and theory support, and also helpful for the future healthy development of stock market.