DocumentCode
2429157
Title
Notice of Retraction
An Analysis of Herding Behavior under Cognitive Bias Structure - A Stock Market Case Study
Author
Zhu Wenjuan ; Tian Jun ; Chen Ying
Author_Institution
Coll. of Econ. & Manage., Guizhou Univ. for Nat., Guiyang, China
fYear
2010
fDate
7-9 May 2010
Firstpage
5369
Lastpage
5372
Abstract
Notice of Retraction
After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.
We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.
The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.
Recent literatures in empirical finance are surveyed in its relation to underlying behavioral principles, principles which come primarily from psychology, sociology and anthropology. Behavioral finance encompasses research that drops the traditional assumptions of expected utility maximization with rational investors in efficient markets. Herd behavior would be considered one of investors´ behaviors that can affect the stock market efficiency. What is the herd behavior and how it comes into? More researchers think the cognitive bias would result in herd behavior. This article contains three parts. The first part --introduction-we provide a brief introduction of herd behavior; The second part --a case study- (1) A small scale experimental questionnaire investigation, only 99 samples, mainly supplies some cognitive bias evidences in stock market. Through analyzing of questionnaires we can simply certify that the psychogenic characters, social cognition and anthropological characters maybe result in bounded rationality during stock investment. (2) We notice some special information, and their affection would be enlarged by media, and then stock price would fluctuate abnormally. But we discuss, simply, the relationship between the information and stock price fluctuation, without any positive method. The third part: conclusion part. We list the investigation conclusions and explains the possible reasons --conformity pressure, trade-off difficulty and person cognition, incidence of information, neural simulation--why - he endowment effect, sunk cost, house-money effect would effect the person decision and bounded rationality.
After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.
We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.
The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.
Recent literatures in empirical finance are surveyed in its relation to underlying behavioral principles, principles which come primarily from psychology, sociology and anthropology. Behavioral finance encompasses research that drops the traditional assumptions of expected utility maximization with rational investors in efficient markets. Herd behavior would be considered one of investors´ behaviors that can affect the stock market efficiency. What is the herd behavior and how it comes into? More researchers think the cognitive bias would result in herd behavior. This article contains three parts. The first part --introduction-we provide a brief introduction of herd behavior; The second part --a case study- (1) A small scale experimental questionnaire investigation, only 99 samples, mainly supplies some cognitive bias evidences in stock market. Through analyzing of questionnaires we can simply certify that the psychogenic characters, social cognition and anthropological characters maybe result in bounded rationality during stock investment. (2) We notice some special information, and their affection would be enlarged by media, and then stock price would fluctuate abnormally. But we discuss, simply, the relationship between the information and stock price fluctuation, without any positive method. The third part: conclusion part. We list the investigation conclusions and explains the possible reasons --conformity pressure, trade-off difficulty and person cognition, incidence of information, neural simulation--why - he endowment effect, sunk cost, house-money effect would effect the person decision and bounded rationality.
Keywords
stock markets; anthropological characters; cognitive bias structure; empirical finance; experimental questionnaire investigation; herding behavioral finance analysis; psychology; rational investors; sociology; stock market; stock price fluctuation; Cognition; Educational institutions; Encyclopedias; Finance; Psychology; Stock markets; Herd behavior; bounded rationality; cognitive bias; psychology;
fLanguage
English
Publisher
ieee
Conference_Titel
E-Business and E-Government (ICEE), 2010 International Conference on
Conference_Location
Guangzhou
Print_ISBN
978-0-7695-3997-3
Type
conf
DOI
10.1109/ICEE.2010.1343
Filename
5592309
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