Study On Prospect Theory On The Basis Of The Decision Behavior Of Chinese Securities Investors

Prospect Theory is an award-winning achievement of the 2002 Nobel Prize in Economic Sciences. However, in the tests of Prospect Theory, we have also heard the rejection sound besides the confirmation evidence. This paper critically draws lessons from the formers' research achievements, and synthetically uses such economic methods as theoretic analysis combined with empirical analysis, normative analysis combined with positive analysis, such econometric methods as unit root test, cointegration test, error correction model, autoregressive distributed lag model, and such statistic methods as descriptive statistic analysis, one-way analysis of variance to test Prospect Theory by the decision behavior of Chinese securities investors and explain the decision behavior of Chinese securities investors in face of different gains or losses by Prospect Theory on the basis of precise understanding and analyzing Prospect Theory. Finally, the main conclusions and suggestions of this paper are proposed, especially several kinds of new investment tactics of behavioral finance, the general trendy investment tactics, the Foolish Old Man's investment tactics and the unusual investment tactics. Others are omitted.