The Empirical Study Of The Influence Of Investor Behavior Factors To Stock Pricing Under The View Of Behavioral Finance

Since the early nineteen-eighties, financial market shows lots of abnormal phenomenon that make people begin to doubt the correctness of traditional finance theory which establish on rationality hypothesis and effective market hypothesis. A great deal of evidence indicates that different investors have different understandings, judgements and psychological wave motions towards market information, all of those factors may result various investment decision. As a result, some scholars began to study the influence of investor's psychological wave motions and behavioral decisions to financial market.This paper mainly compare the difference between traditional finance pricing theory and behavioral finance pricing theory and point out the insufficient of traditional finance theory and the influence factors of stock pricing and research achievements of behavioral finance. Utilize factor analysis to structure a perspective index system which influence the stock pricing under the view of behavioral finance and test validity of the behavioral finance index system through granger causality test as reference for building a reasonable stock pricing model, at the same time, lay a foundation for evaluation the maturity of difference capital markets. Utilize grey relational analysis model to empirical test the relationship between Shanghai Composite Index's fluctuation and the above mentioned behavioral finance factors. Under all of above research conclusions and enlightenments, analyze the existing problems in China stock market and then give some suggestions accordingly. The concrete content include:(1) Introduction: Summarized background and significance of the selected topic; analyzed the current research states at home and abroad.(2) Compare traditional finance pricing theory and behavioral finance pricing theory and point out the development direction of capital market pricing theory.(3) Establish behavioral finance index system. This paper select the influencing factors of investor behavior from five areas: macroeconomic, macro monetary, company fundamental, technical analysis of stock market and market sentiment and select 26 concrete indexes. Do factor analysis, Stability test and granger causality test using the 26 selected indexes to construct behavioral financial index system.(4) Grey relational analysis: by using grey relational degree method to calculate the correlation degree score of ShangHai Composite Index and the six common factors in behavior finance index system and make the relevance ranking(5) Analysis the reason of empirical results. Comparing with US stock market, this article concrete analysis the present problems of China stock market from four specific aspects:investor, financier, regulator and running system of stock market.(6) Offer some suggestions accordingly: To solve the above problems, put forward some specific policy recommendations, to improve the function of China stock market's investment and financing function and rationalize allocation of resources.