Analysis of Assets Distribution and Price Volatility-Based on Behavioral Financial Experiment
Assets distribution restrains trader behavior, so it is one of the factors that affect the stock price volatility. We conducted 13 trading experiments to analyze the relationship between assets distribution and price volatility. Results suggest that the price volatility is positively correlated with the nonuniformity and the changes of assets distribution, that is to say, the more nun-uniform assets distribute, the higher price fluctuates. The price fluctuation often follows a change of the assets distribution: the prices fluctuation goes up immediately when assets distribution changes significantly. We also show that the number of traders is a factor for the volatility of price because assets distribution is more likely to take a change if there are fewer traders in the market, which contribute to a wider prices fluctuation. The results can help us maintain market stability and establish an early warning mechanism.
Assets Distribution Behavioral Financial Experiment Stock Price Volatility
Limin Wang Fei Tian Xiangdong Liu
Dongling School of Economics and Management, University of Science and Technology, Beijing, 10083, China
国际会议
武汉
英文
658-661
2011-10-17（万方平台首次上网日期，不代表论文的发表时间）