Empirical Study On Investors' Over-trading Behavior Under The Influence Of Media Information

Investors are more and more dependent on the information provided by the Internet financial media platform to make investment decisions.The reporting of micro-blog's popular events,policy news and company announcements leads to investors buying and selling related stocks frequently.Thus,over-trading become a common phenomenon in financial market.The reasons behind over-trading may be a complex mechanism about media information dissemination effect and bounded rationality of investors.The purpose of this paper is to explore the essential role of information in over-trading,and to get empirical evidence about investors over trade under the stimulation of media information.First of all,this study puts forward the overall framework of the relationship among media information,bounded rationality and anomalies in financial market.In accordance with the above framework,this paper summarizes the connotation of over-trading and the effects of media information on stock market from the aspects of information content and quantity.Meanwhile,limited attention and investors emotion are extracted as the two endogenous variables of bounded rationality under the influence of media information.Then,based on the overall theoretical framework,this paper draw the argument that media information drives bounded rational investors to over trade by attracting investors' attention and infecting investor sentiment and cognition.Two empirical studies are conducted to investigate whether and how media information encourages investors to over trade.In the frist empirical study,we investigate the abnormal impact of typical media information such as micro-blog's public events,industry news and company announcements on market turnover rate through event analysis.We conclude that media information disclosure and communication lead to more significant over-trading of stocks-The second empirical study investigate whether media information promotes investors' excessive transaction by influencing investors' bounded rationality,by constructing agent variables of limited attention and emotion which are affected by media information.The empirical results show that news articles in the Internet financial media attract investors' attention,and the positive or negative emotions contained in the articles infect investor sentiment.Then,the investors' bounded rationality agent under the influence of media information significantly affect future investors' over-trading behavior.Finally,this paper draws the conclusion:media information can attract investors'attention and affect investor sentiment and cognition,thus,promote bounded rational investors to over trade.