Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 7th International Conference on Economic Management and Green Development
Series Vol. 29 , 10 November 2023
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Research on the Anchoring Bias in Stock Investment: Evidence from Chinese Stock Market
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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
- 10 November 2023
- 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