Research On Management Experiment Of Securities Regulation Based On Behavioral Finance

Management experiment is a process of examining, comparing and improving management theory or providing basis for managers' decision-making. It studies how to deal with a phenomenon or problem in a controllable experiment environment, by controlling the experiment condition, observing behavior of experimental participants and analyzing the experiment result.Combining the experimental methods and Behavioral Finance, the paper studies the management experiment of securities regulation. Based on the impact of securities regulation for decision-making behavior of the investors, it analyzes how the securities regulatory agencies supervise and manage the various business units and its activities of securities market. The research can pre-assess the impact of the securities regulatory measures and has a certain role for establishing and improving securities regulatory system. It is helpful for strengthening supervision of securities market to improve the failure of securities market mechanism, to maintain a good market order, to improve the efficiency of the securities market. And it is also conducive to the protection of the interests of small and medium-sized investors and promoting the healthy and stable development of securities market.Firstly, this paper outlines the theoretical basis of management experiment, securities. regulation and behavioral finance. Secondly, a model was set up in Similarity-Extension Modeling Method. After designing and developing a system of management experiment of securities regulatory, four experiments was implemented. Lastly, the paper analyses the data comprehensively by statistical methods and experimental management methods.Four conclusions can be drawn from this paper. First, management experiment research provides a trial-and-error method with low cost. It is able to study the investment decision behavior of investors well. Management experiment can play an active role for building and improving securities regulatory system. Second, the appropriate securities regulation is effective, help for reducing market bubble and improving market effectiveness, useful for guiding investors for rational investment. Third, management factors have a great influence on the formation of the securities prices. Management effect can be verified through experiment. Fourth, the excessive non-rational features of investors in the management experiment may result in stock market risk and personal loss. Therefore, it is necessary to enhance investors' risk education. The paper has two innovations. Firstly, the design and development of management experiment of securities regulatory. Secondly, introduction of fuzzy management factor and verification of the psychological effects of management in the management experiment of securities regulation.Based on the experimental conclusions, this paper suggests some measures to improve the securities regulation.