Advances in Economics, Management and Political Sciences

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Proceedings of the 7th International Conference on Economic Management and Green Development

Series Vol. 29 , 10 November 2023


Open Access | Article

Research on the Anchoring Bias in Stock Investment: Evidence from Chinese Stock Market

Linlin Jiang 1 , Fangyu Jin 2 , Yixin Liu 3 , Hongyi Yang * 4
1 Suzhou Dulwich High School
2 The Chinese University of Hong Kong
3 Wuxi Dipont School of Arts and Science
4 Beijing Normal University-Hong Kong Baptist University United International College

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 29, 120-125
Published 10 November 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Linlin Jiang, Fangyu Jin, Yixin Liu, Hongyi Yang. Research on the Anchoring Bias in Stock Investment: Evidence from Chinese Stock Market. AEMPS (2023) Vol. 29: 120-125. DOI: 10.54254/2754-1169/29/20231365.

Abstract

Under the influence of factors such as information loss, information asymmetry and personal experience, people can be easily affected by anchoring effect and make wrong decisions. The anchoring effect is a cognitive bias whereby an individual's decisions are influenced by a particular reference point or anchor. This influence can be reflected in many aspects, such as the promotion activities in shopping malls, the choice of insurance products, or the decision to sell or buy in the stock market. In recent years, scholars have gradually found that anchoring effect will influence various decisions made by investors in the stock market to a certain extent, and therefore affect the price of individual stocks in the stock market. Based on previous research experience, the paper summarizes the changes in investors' decisions caused by anchoring deviation in China's stock market and its impact on specific stock prices. Therefore, this study on anchoring bias in the stock market has important implications for investors, traders, and financial analysts. By understanding the ways in which cognitive biases can shape decision-making in the stock market, individuals can take steps to mitigate the effects of these biases and make more rational investment decisions.

Keywords

anchoring bias, stock market, stock investment

References

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Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 7th International Conference on Economic Management and Green Development
ISBN (Print)
978-1-83558-079-0
ISBN (Online)
978-1-83558-080-6
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/29/20231365
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated