An Analysis Of The Herd Behavior In China’s Internet Finance

Herd behavior as an important research topic in behavioral finance,the past mainly on its research in the securities market,with the rise of internet finance,the herd behavior and the internet financial combination of organic,with a certain significance.The paper aims to explore the characteristics and causes of the herd behavior in the internet financial platform under the background of China’s national conditions,and why and how to reduce the herd behavior in the internet financial field.First of all,the paper explores the performance of the herd behavior in the network lending platform,the crowd funding platform,and the internet consumer finance.Second,the analysis of China’s internet finance on the herd behavior of two major causes-information asymmetry and emotional infection.The impact of internet finance on information asymmetry is twofold,On the one hand,by virtue of its technical advantages,such as the use of search engines,large data can effectively reduce the information asymmetry,but based on China’s national conditions,the credit system is imperfect,leading to China in the information island of the embarrassing situation,at this point the technical advantages and can not effectively reduce the information asymmetry.On the other hand,due to the virtuality of internet finance,concealment,uncertainty,will enhance the information asymmetry.Moreover,the interconnection of internet finance can accelerate the pace of emotional transmission.Then,from the perspective of qualitative and information flow model,the paper discusses how the information asymmetry affects the herding effect,and uses matlab to simulate the intuitionistic effect of information asymmetry on herd behavior,and obtain the positive change of analysis cost and herd behavior,The opposite of the reciprocal income and the flock effect.Then,it analyzes the reasons of reducing the herding effect in China’s internet finance,analyzes and puts forward the countermeasures to reduce herd behavior—— standardize the information disclosure system,improve the supervision system,perfect the credit system and train the traders to obtain the information ability.