Research On The Capital Flow Model Of Securities Market Based On Behavioral Finance

Based on behavioral finance,this paper establishes a capital flow model of the securities market by using the method of dynamic system.Firstly,this paper divides the capital into three states: watching capital S,investing capital I and withdrawing capital R according to the process of capital investment in the securities market.Assuming that investor behavior is influenced by market fundamentals(stock market funds and stock prices)and market sentiment,this paper characterizes the transition of market capital status as an probability of transfer between different market capital status.According to the hypothesis of the model,the process of market capital flow is expressed as a system of ordinary differential equations,and the global stability of the equilibrium point of the system is studied by using the qualitative analysis theory of dynamic system.Then the influence of model parameters on system stability is obtained by numerical simulation through control variable analysis.The parameter a measures the degree of herdity in the securities market,and the larger a is,the more unstable the system;the parameter b measures the degree of arbitrage in the securities market and the larger b is,the faster the system reaches a steady state.In the process of numerical analysis of the model,it is also found that the market price presents three forms under different parameter settings:basic value balance,non-base value equilibrium and periodic form.This paper creatively takes stock market capital as the research object,and establishes a mathematical model of the process of market capital flow based on the theory of dynamic systems.So far,behavioral finance has not formed a clear research paradigm and framework.The research method of this paper provides a new direction and effective method for the further study of behavioral finance theory and method.