Stock Excessive Volatility Causes And Measurement Resolution

Stock market volatility is inherent basic attribute of the stock market, the ideal state of the stockmarket running is not to eliminate the fluctuations, but to moderate fluctuations. Moderate volatility isthe volatility of which the stock price should not be too frequently, the volatility is not too large.China’s stock market, after20years of development, there are significant particularity in the marketstructure and operational mechanism, the high frequency of price fluctuations, fluctuations. Identifythe influencing factors of excessive volatility of the stock market and its measurement resolution, soas to explore the law of the excessive volatility of the stock market, and eventually find to stabilizeexcessive volatility method is a long-term and arduous task.First describe the characteristics of the general volatility of the stock market, the factors thataffect the stock market volatility, a comprehensive series of literature to identify the factors that affectthe stock market to excessive volatility, and to determine the object of study.Followed use the event study methodology to examine the impact of macroeconomic policiesand major events at home and abroad on the excessive volatility of the stock market. The researchresults show that China’s stock market has a strong sensitivity of policy and major events, and thedesired effect, and the market for "message" existence a long time and degree of market on majorpolicies and events deeper delayed response. Therefore, macroeconomic policy changes the impact ofthe major events of the accumulation of excessive volatility in the stock market.Then, through the combination of the empirical analysis of the winners and losers, therelationship between the degree of investor behavior and stock market volatility need to be examined.The research results show that the irrational behavior of investors for the excessive volatility of thestock market is closely. Therefore, investor behavior can be used as an important indicator to examinethe extent of China’s stock market volatility.According to the recent findings of the study concluded, government departments should becautious timely and effective introduction of the policy of intervention in the stock market, the face ofthe major events at home and abroad to take effective measures in a timely manner. Reduce themarket shocks frequency and volatility, in order to improve the stability of the market.