The “herd Effect” In Securities Investmen

In the rapid development of the economy today,economics is no longer just a single field of science,the discipline is often combined with the psychological research,which also involves the political,cultural,humanities and other disciplines together to carry out research,will greatly Enhance the accuracy and progress of economic theory and practice.In the past,economic and financial theories argue that all investors are economically rational investors,and most scholars use this as a theoretical hypothesis to carry out research in related fields such as Markowitz’s portfolio theory and capital asset pricing model.A very important theoretical model.However,in recent years,the financial volatility of securities prices have occurred,the study found that today’s financial investors are not always rational,psychological factors and various economic environment factors make investors irrational behavior occurred during the day,thus The whole capital market has caused some adverse effects.China’s securities market has a unique institutional background compared with the western developed countries.The imperfect market system and the regulatory system have made China’s capital market a weak position in the capital market of the western developed countries.The irrational investment behavior has occurred.So the classic principles of economic and financial management is not suitable for China’s existing securities market investment system,the evaluation error.Now the mainstream economics principle that investors in the process of securities investment there are a variety of investment information and other human factors there are more or less cognitive bias,in this investment background,the investor’s investment behavior is not entirely rational The irrational phenomenon has occurred.Therefore,it is necessary to consider the economic analysis of many economic environments and the irrational factors of investors.In recent years,there is a clear flock effect in China’s securities investment market,which is the most reasonable explanation of irrational investment.The flock effect refers to the investor who invests in blindly follow the trend because of the lack of relatively effective investment information and in the case of an information asymmetric market,always based on the investment behavior of others.China’s market due to the existence of a large number of investment retail,risk aversion mechanism is relatively backward,the market will exist a lot of herding effect hindered the good development of the securities market.Because of the large influx of the main body of the flock effect,the relationship between the main body is relatively large,which has a certain influence on the stability and healthy development of the financial market.Therefore,academia and major regulators should pay attention to the flock effect,thus stabilizing the market order.This paper analyzes the herding effect on China’s securities market by analyzing some abnormal events in China’s securities market in recent years,and.analyzes the herding effect of China’s new three-board market by constructing GARCH model,and focuses on the theory of positive feedback transaction China’s new three-board market,the sheep’s effect to do a further detailed analysis,hope that through the new three board market,"herding effect" empirical research can give China’s securities market construction and investment behavior of investors to bring meaningful inspiration.