Research On The Irrational Behavior Of Investors In China's Stock Market

From EMH that is based on hypothesis of rational man to behavioral finance and the correlative theories of irrational behaviors,people have paid more and more attention to the irrational behaviors of investors and correlative phenomena in stock market.In this dissertation,the conception of irrational behavior of investors is defined and some important theories of behavioral finance are elaborated.On the basis of these theories,this dissertation describes and analyzes some phenomena and problems in the stock market of our country.It also discusses that the formation of these phenomena and problems is caused by both the internal factors that includes cognitive bias and emotional problems and the external factors that includes policies and market environment.The psychological deviation of group may expand their influence in the market,either.Then based on the characteristics of our stock market and the focal point of irrational behaviors,this dissertation chooses the price fluctuation of our stock market in recent years as the sample and builds a model to test the existence of herd behavior in our stock market.In addition,it comes to the conclusion that herd behavior is more intense in downward market and it is more obvious in Growth Enterprise Market.At last,according to the conclusions,the dissertation draws the following recommendations by considering both the investors and the development of market: enhancing the quality of investors comprehensively,improving the structure of investors,defining the role of government,optimizing the market environment and promoting financial innovation prudently.