An Empirical Study On The Impact Of Herd Effect Of Chinese Equity Funds On Stock Market Efficiency

Although China’s securities investment funds started at the same time as the stock market,they have experienced a series of twists and turns.China’s strong support for the development of stock funds is based on the consideration of stable market.The managers of stock funds are institutional investors.Professionally investing,I hope that the development of stock funds can improve the majority of retail investors in China’s A-share market,chasing up and killing.At the same time of rapid development,the fund also appeared in the Chinese market,such as “carrying the group” and following the “star fund”,which brought unstable factors to the fund market.Does the equity fund’s funds operate consistently in the stock market? Will form a further follow-up effect in the market,trigger the herding behavior in the stock market,causing unusual fluctuations in the stock market,reduce the efficiency of resource allocation in the stock market,the existence of such phenomena in the increasingly large open-end equity funds and their possible The impact of the stock market has increasingly become the focus of attention.This article starts with partial stock funds of securities investment funds.First of all,it is possible to study the existence of herd effect in partial stock funds market from the theoretical perspective.First,from the perspective of game theory,investorsare analyzed,Then follow the motivation of the behavior;Then from the manager manager,market mechanism and other aspects of the analysis of the reasons for the existence of herding in the market.The herding effect is not only caused by investors but also by the operation of various mechanisms in the market.Starting from the stock fund of the securities investment fund and the partial stock fund of the hybrid fund,this paper firstly studies the possibility of the herding effect in the partial stock fund market from the theoretical aspect,and analyzes the existence of the market from the perspectives of fund managers and market mechanisms.Possible reasons for the herd effect.From a theoretical point of view,the herd effect is not only caused by investors,but also by the operation of various mechanisms in the market.In the empirical model selection,after comparing the four main models of the herding effect test,the article uses the LSV model to empirically analyze the data of stock funds from the first quarter of 2013 to the fourth quarter of 2017.The empirical results show the stocks in China.The overall herd effect in the fund market is quite significant.After analyzing the data,the conclusions are still consistent.In the analysis of the impact of stock-type herding on the efficiency of China’s stock market,the stock market efficiency is measured by structure.The three indicators of stock price synchronicity,stock price volatility and the lag of market information content,analyze the impact of stock fund’s herd effect on three indicators,empirical results show that the stock fund’s herding effect belongs to irrational flock Behavior,the volatility of the stock market,the synchronization of stock prices and the lag of the information content of the market will have a negative impact,reducing the efficiency of the stock market.According to the theoretical discussion results and empirical test results,the article gives advice from the aspects of regulatory measures outside the fund,information disclosure of listed companies,internal corporate governance and listing approval.