Research On The Choice Of Securities Investment Based On Attentin

Investors change theirs risk evaluation and expectation of stock returns by information obtaining. Aid by Information on attention, Investors choose theirs securities portfolio, So, Researching about attention play an important role in stock investment. Under background of that Information is relatively excessive compared to attention, this paper attempts to analyze how to dispose attention resource in the course of information searching, and discusses that decision-making is affected by incomplete information based on selectivity attention. Moreover, this paper attempts to extend attention researching into domain of stock investment, and inquires into the problem of stock choosing based on attention. In addition, this paper gives some explanations on finance anomalies by attentionFirst, this paper discusses that impact of attention exerts on economic activities, and think attention has become a key link in decision-making chain of information-attention-new information, then puts forward NALEAA model which attention can induce economic activities. After explained that attention "bottleneck" had exerted a restriction on information obtaining in information receiving process, this paper brings forward a viewpoint that information set is decided by attention namely a subjective resource can deviate investors' expectation from the real, and blurs action set and state set, then irrationalize economic activities. Besides, on the basis of upper view, assisted by set theory this paper discusses why and how attention impact economic activities under frame of decision-making. Thus this paper explains relation between attention and economic activities from normative angle and positive angle.Next, this paper discusses investors how to dispose theirs attention in the information obtaining process. As a kind of subjective resource, attention has a character that it attenuates in short term while regenerates in long term, Which needs a new economic theory to explain. Therefore, starting with analyse of relative quantity, this paper deduces the rule that tolerance of attention consumption reduces with time, and explains the phenomenon that information searcher take action of selective attention. Besides, Via anatomizing study mechanism between information searched and priori knowledge, this paper inquires into optimized paths during multi-periods dynamic disposition process. From these upper discussion, this paper concludes that it is a dialectic process which activity of the information searcher moves towards the non-rationality from the rationality, then from the non- rationality to the rationality in attention disposition.Then, in light of the fact that investors especially individual investors' choice is guided by attention in the course of stock investment, this paper extend analyse which attention affect decision-making to stock investment. Under the hypothesis of inefficient market, by mean of adding restriction of attention resource, this paper revises return and risk in Markowitz's mean-variance model and structures a securities portfolio model of tri-target restriction plan, namely securities portfolio model based on attention, so expands Markowitz's model upon theory. After solving this model, this paper discussed the relation between the capital disposition and the attention disposition, and analyse investors' securities selection process from attention point angle. Owing to securities market driven by investors collective decision-making and investors individual investment decision depend on theirs attention disposition, this paper analyses space and time distribute characters of attention in securities market according to psychologic measure method, then put forward that population attention coincide with logarithm normal distribution, and disclose the relation between individual attention and population attention. Fourthly, Adopting exchange amount and closing price in first 5 minutes K line as analyse variable, and views stocks recommended by three major securities paper in July and August of 2005 as sample, this paper tests that if real investors' investment activities is affected by attention disposition. Outcome of test shows that investors really interest in and reaction to stocks recommendation, that is to say stocks recommendation can bring some value to investors in a short term. At the same time test also shows that just like content, form, position and expression style of recommendation all play important role in attention disposition Fifthly, this paper analyses the heritance relation between attention theory and Simon's bounded rationality, and regards the bounded rationality as the base of behavioral finance. In addition, this paper also thinks that limited attention is the kernel of bounded rationality, therefore, set a basis for introducing attention theory into behavioral finance.Finally, taking attention as the key line and adding psychology factors such as emotion and confidence, this paper explains some finance anomalies such as "Herd effect" "home bias" "time effect" and "announcement effect" etc, and discusses the relation between attention with some behavioral finance phenomena, for example "Frame theory" "Anchoring" "Availability" "Memorability Heuristic"and "Representativeness Heuristic" and so on, Which demonstrates it is feasible to bring attention theory into behavioral finance research.