Characteristics Of Investment Behavior From The Perspective Of Behavioral Finance

"Herding effect" is refers to the economic individual in making economic decisions and choices don't according to their own judgment and objective conditions,but because of its own conformity copycat psychological selection to make the same decision with others,specifically in the investment behavior of the stock market,"herding effect" is in an investment group,individual investors and action,always ACTS according to other investors to invest and follow other market main body behavior."Herd behavior" aggravates the price fluctuation in the capital market,which is not conducive to the effective allocation of resources in the capital market and the formulation and transmission of regulatory policies.Based on the existing research,this paper analyzes the herding effect of the stock market and explores the individual and time-varying characteristics of the herding effect of the stock market by combining the development status of China's stock market and calculating the deviation index of stock return rate and market return rate on the basis of CSAD model.In this paper,panel data from 105 months of 25 sample stocks in the sse 50 index from 2010 to 2018 were selected as samples and empirically analyzed to analyze the individual and time-varying characteristics of herd behavior in China's stock market.The empirical results show that most of the sample stocks have herding effect,and according to the different characteristics of herding effect,the sample stocks can be divided into four types.One is that there is no herd behavior in the sample interval.One kind of herd behavior exists when the market yield is larger than the critical value.One kind of herd behavior exists when market yield is less than critical value.According to the time-varying characteristics of herd behavior,we find that the herding effect is more serious when market returns are higher than when market returns are lower,the third type of stock in the market volatility is larger than the market is small herd behavior is more serious,the fourth stocks in the market volatility is lesser than the market volatility is larger herd behavior is more serious.In addition,those stocks that do not have herding effect in the sample interval tend to come from mature industries,with high market value,large total assets and stable financial status.As for the control of herd behavior,this paper suggests that: according to the individual characteristics of herd behavior,regulators should conduct classified management of the stock market and adjust the focus of stock supervision in different industries with different characteristics.For example,the financial industry often shows herd behavior.According to the time-varying characteristics of herd behavior,under different economic cycle,the focus of your regulation effort towards the regulators should be different,such as the economy is overheating focus on financial markets to avoid overheating investment in herding effect,focus on to boost investor confidence in the period of recession,supporting the excellent enterprise out of your bad environment as soon as possible,let investors have confidence;For herding effect of time-varying characteristics in response to market volatility,regulators should pay close attention to market volatility,pay special attention to in the volatile market yields of some growth industry,the industry performance in yields when the volatile herd behaviour of distinct,fluctuations in market yields more hours to pay special attention to some maturity industry,this kind of industry herd behaviour in the yield fluctuation is small;Finally,according to the behavioral finance research and analysis of the causes of herd behavior,the regulators should make efforts to reduce the cost of information acquisition,reduce information asymmetry,and investors should establish a rational investment concept.