Behavioral Finance Theory And The Chinese Stock Market Investor Behavior Research

Investor (individual) is a mostly principal part of the securities market. Their investment behavior plays a key role during the securities market's functioning. The forepart theories studying about the investors' behavior in the securities market are the classical financial theories as Efficient Market Hypothesis (EMH) and Modern Assets Portfolio Theory (APT). But some abnormal phenomenon in the securities market couldn't be explained by those classical financial theories. The rational man hypothesis and valid market theory are especially wildly oppugned. Decision-making in practice doesn't always follow the rational man hypothesis. The securities market isn't composed completely by rational man. However there's large numbers of "non-rational investors" in the market. So we need an entirely new theory to annotate the investment behaviors in the securities market. The financial theory of behavior integrated by research fruit of psychology, sociology and anthropology erects a set of descriptive models exactly reflecting decision-making behaviors of investors and market running status. The text makes pilot study in respect of investors' behavior of our country with the financial theory of behavior.The text is divided into four parts:Chapter 1 mainly reviews the forepart theories of investor's behavior and points out the deficiency and limitation of those theories.Chapter 2 makes detailed dissertation about the financial theory of behavior, including engender and development of finance, and the foundation of the financial theory of behavior. It also explains the abnormal phenomenon in the securities market with the financial theory of behavior.Chapter 3 introduces the investors' instance and behavior characters of the Chinese securities market at first. Then it makes some demonstrative study about the investors' behavior of the Chinese securities market with the financial theory of behavior. It also analyzes the factors infecting the investors' behavior of the Chinese securities market.Chapter 4 mainly discusses the applications of the financial theory of behavior in the securities market and provides some policy suggestions.