Analysis on the Relationship Between Investors and Stock Market Volatility Based on Behavioral Finance

DOI

10.2991/jahp-18.2018.35How to use a DOI?

Keywords

CSAD; rational man; behavioral finance; herd behavior

Abstract

Nowadays, securities investment has become one of the important channels for Chinese household asset allocation. However, there are still many shortcomings in China's securities market. Therefore, the traditional "rational person hypothesis" is difficult to be established in the market. At this time, behavioral finance proposes that there is a herd effect in the process of securities trading in China. This paper in 2007-2008, 2014-2015 Shanghai 180 index as the data source, return the CSAD (cross sectional absolute deviation method to empirical study to test this idea, draw the conclusion: China's a-share market and the irrational factors in the process of this factor would lead investors to trade the enormous losses. Through the analysis of retail investors, institutional investors and securities market, the reasons for the irrational sheep flock effect in China's a-share market are followed by corresponding solutions from various aspects. Finally, this paper hopes to gradually guide the whole market to adhere to the value investment concept through various means.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Jiehui Li
AU  - Qiangwen Zeng
PY  - 2018/08
DA  - 2018/08
TI  - Analysis on the Relationship Between Investors and Stock Market Volatility Based on Behavioral Finance
BT  - Proceedings of the 3rd International Conference on Judicial, Administrative and Humanitarian Problems of State Structures and Economic Subjects (JAHP 2018)
PB  - Atlantis Press
SP  - 170
EP  - 176
SN  - 2352-5398
UR  - https://doi.org/10.2991/jahp-18.2018.35
DO  - 10.2991/jahp-18.2018.35
ID  - Li2018/08
ER  -