University of Oulu

Financial behavior of individual investors in Chinese stock markets

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Author: Zhang, Ninuo1
Organizations: 1University of Oulu, Oulu Business School, Department of Finance, Finance
Format: ebook
Version: published version
Access: open
Online Access: PDF Full Text (PDF, 0.9 MB)
Persistent link: http://urn.fi/URN:NBN:fi:oulu-201704131485
Language: English
Published: Oulu : N. Zhang, 2017
Publish Date: 2017-04-20
Physical Description: 61 p.
Thesis type: Master's thesis
Tutor: Conlin, Andrew
Reviewer: Perttunen, Jukka
Conlin, Andrew
Description:

Abstract

As the market entity, the investment behavior of individual investors play a key role for the operation of securities market. The early research of investors’ financial behavior mainly includes the classic theories such as Efficient Market Hypothesis (EMH) and Arbitrage Pricing Theory (APT). However, many anomalies cannot be well explained by traditional financial theory. In actual, there exists a large amount of irrational investors in the market. Combined with the practical situation of Chinese policy-oriented market and the characteristics of Chinese individual investors, the circumstance is more serious in Chinese market. Thus, applying financial behavior theory to investigate the investment decision of investors is necessary. This article adopts financial behavior theory and data analysis to examine the two main anomalies of Chinese individual investors, which are herding behavior and overconfidence phenomenon. Also, it proposes the corresponding policy suggestions for Chinese stock market.

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Copyright information: © Ninuo Zhang, 2017. This publication is copyrighted. You may download, display and print it for your own personal use. Commercial use is prohibited.