The Impact of Herd Behavior on the Chinese Stock Market

DOI

10.2991/assehr.k.220110.159How to use a DOI?

Keywords

Herd behavior; Chinese finance market; cross-sectional standard deviation

Abstract

Herd behavior refers to an individual who is influenced by the behavior of the outside crowd, and shows his own perception, judgment, and cognition opinion or the behavior of the majority of people. In behavioral finance, herding is always used to describe similar investment choices due to mutual influence among investors. It happens at the same time with market volatility, which exists in both up and down markets. This article investigates the existence of herd behavior in the Chinese stock market and the impact of herd behavior in the Chinese finance market. Concluding the studies that make use of the nonlinear model of Christie and Huang (CH Model) and Chang, Cheng, and Khorana (CCK model). Evidence of herding is found in Chinese stock market. It is shown that herding is influencing Chinese stock market for decades from both sides.

Copyright

© 2022 The Authors. Published by Atlantis Press SARL.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Yuanzhi Lei
PY  - 2022
DA  - 2022/01/28
TI  - The Impact of Herd Behavior on the Chinese Stock Market
BT  - Proceedings of the 2021 International Conference on Public Art and Human Development ( ICPAHD 2021)
PB  - Atlantis Press
SP  - 845
EP  - 848
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.220110.159
DO  - 10.2991/assehr.k.220110.159
ID  - Lei2022
ER  -