Institutional Change and Investor Behavior (An Empirical Study of the Chinese Stock Market)

Author: Lu Hua
Publisher:
Publish Date: 2006-07-01
Features: Government, enterprises, and investors are the three main participants in the stock market. This book primarily focuses on the relationship between institutional changes in the Chinese stock market and investor behavior. As a key subject in providing institutional frameworks, the government's behavioral characteristics and their impact on institutional changes are also a major area of research in this book. It emphasizes the interactive relationships among the government, investors, and institutional changes in the Chinese stock market. From the perspective of institutional origins, the book also explores the background, reasons, and relationship between the emergence of the Chinese stock market and investor participation. Additionally, it elaborates on the interactive dynamics between the general institutional characteristics of the stock market and investor behavior, as well as the interactions among the government, investors, and institutional changes in the stock market under transitional conditions. The formation of the Chinese stock market is a product of the integration of China's share system reform and financial system reform. After more than a decade of development, the Chinese stock market has become an important component of the national economy. Investors are one of the key micro-subjects in the stock market, and the vast investor base has become a special and significant participant group in China's economic life. Based on the theoretical model of institutional-behavior interaction, this book employs behavioral finance theory, new institutional economics, and sociological theory to comprehensively and systematically study the interactive relationship between institutional changes in the Chinese stock market and investor behavior. Through an examination of the Chinese stock market, the author reveals the interactive mechanisms between the two, making this research highly exploratory. The book is logically structured, well-supported by evidence, analytically insightful, and rich in theoretical depth. At the same time, it integrates research findings from multiple disciplines. For example, it draws on the results of behavioral finance theory, conducts questionnaire surveys in various provinces and cities to test the decision-making characteristics of individual investors in the Chinese stock market, and derives corresponding conclusions. It also borrows the bargaining model from sociology to explore how investors' behavioral logic and the government's administrative logic influence stock market changes, among other contributions. These research outcomes all hold significant theoretical innovation value.