Research On Evolution And Transformation Of Herd Behavior Of Institutional Investors

Institutional investor herding behavior has always been a hot topic in the theoretical circles at home and abroad,but few studies have clearly explained the evolution and transformation mechanism of herd behavior,and most of them are limited to the bull market bear market for general comparison.The article attempts to systematically review and analyze the research results of herd behavior theory and model in recent years,and comprehensively combs the concept of herding behavior.From the aspects of information asymmetry,salary system,reputation theory and policy restrictions,the causes of institutional investor herding behavior are sorted out.This paper analyzes the causes of the evolution of herd behavior from the perspective of the alternation of positive and negative feedback behaviors and the changes of information environment.Then the volatility rate of the above-mentioned KLCI yield is based on the actual market conditions,and the market cycle is divided into “low volatility stage – strong rise stage – weak rise stage – high volatility stage– strong down stage – weak down stage – low oscillating stage "These stages build loops for analysis.This paper analyzes the evolution and transformation process of institutional investors' herd behavior at various stages,and systematically expounds the evolutionary transformation mechanism of typical characteristics of institutional investors' herd behavior in various stages.In terms of empirical testing,we chose to use the revised LSV model for empirical research.The trading data of China's securities market is selected as sample data.According to the volatility of the yield of the Shanghai Composite Index,the data is quantified and differentiated,and data such as poorly validated data is processed.The data of each stage is empirically analyzed.The empirical results show that institutional investors in China's securities market have serious herd behavior.The organic results of the various stages of the consolidation are combined with the theoretical analysis to further clarify the characteristics andinternal mechanisms of the evolution and transformation of the herd behavior of institutional investors.Finally,combined with the research results of this paper,from the perspectives of perfecting the agent evaluation system,strengthening the supervision function of the securities market,improving the existing information disclosure system,and promoting the diversified development of investor structure,the countermeasures and suggestions for restraining or relieving the herd behavior are put forward..The innovation of this paper lies in the quantification of the securities market into several stages,and combined with the empirical results system to clarify the internal mechanism of the evolution and transformation of institutional investors' herd behavior.