The Study Of Social Factors Of Investors’ Herd-behavior In Chinese Stock Market

The Chinese stock market has a serious herd-behavior in the process of exploration and development.The investors’ herd-behavior in stock market refers to the investors were affected by external factors to change their investment behavior in an uncertain situation.And the stock market shows the part of same decision.This individual behavior results the stock market having a great volatility,disrupted the allocation efficiency of market resources and the market order.And even it is one of the incentives of the financial crisis.The investor’s herd-behavior in Chinese stock market is deeply affected by the fuzzy information,the authoritative guidance of the policy and the institutional investor’s agent behavior which under the group pressure.The main content of this study is according to the herd-behavior theory to research how the three social factors act on the investors to produce the herd-behavior,then analyze the root causes of this phenomenon.The fuzzy information and the authoritative guidance of the policy leading to the stock market’s herd-behavior is based on the theory of information impact,and the institutional investor’s agent behavior resulting in it is mainly due to the theory of normative impact.The research will through the literature reading,observation and interviews to explore in-depth of social factors of Chinese stock market’s herd-behavior.The study found that people’s investment behavior in the fuzzy information environment of stock market can easily “buying the winners” or controlled by other investors,and this fuzzy information environment is caused by three aspects: Firstly,the information disclosure is not standardized.Specifically including the information disclosure is untrue,incomplete and not timely.The second is informative operation.The third aspect is the immature investors deepening the degree of the information fuzzy,mainly reflected in the individual investors’ weak analysis ability and the institutional investors have the younger characteristics,so that they lack the investment capacity and experience.In addition,the Chinese stock market is also affected by the authoritative guidance of the policy.The reason why investors will have a herdbehavior is because Chinese centralized historical background,government-led market economy model and the stock market’s characteristic of state-owned shares are in dominated proportion.So that people will regard the policy as the authority to guide their own investment decision-making.The cultural normative of collectivist value also promote people to take the authority as the source of their stock investment ideas.Under the information impact,the introduction policy and relevant news always leads to the stock market’s herd-behavior.Finally,the institutional investor’s agent behavior also has a great impact on the herd-behavior of the stock market.In the conflict of the interest of the principal agent,the investment manager is affected by normative impact.Because of the performance pressure of the examination system,the reputation pressure of the career and the failure pressure of the investment,the investment managers appear the herd-behavior easily.