How do the models to measure bubbles in the stock market

Bubble economy is a phenomenon frequently occurs in the process of finance opening and an essential factor contributing to financial crisis. Once bubbles burst, financial crisis is quite possible. Stock market bubble is a key component of a countrys economic bubble, thus it is important to analyze t...

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Main Author: Ding, Yun
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2007
Subjects:
Online Access:https://eprints.nottingham.ac.uk/21537/
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author Ding, Yun
author_facet Ding, Yun
author_sort Ding, Yun
building Nottingham Research Data Repository
collection Online Access
description Bubble economy is a phenomenon frequently occurs in the process of finance opening and an essential factor contributing to financial crisis. Once bubbles burst, financial crisis is quite possible. Stock market bubble is a key component of a countrys economic bubble, thus it is important to analyze the developing process of stock market bubble and to find out the method to eliminate harmful bubble component. The thesis organizes a static index system to measure the bubble component in a stock market and work out the indexes in Chinese stock market. Compared with the indexes in some other countries stock market, the data show that there is big bubble component in Chinese stock market. Using some theories in microeconomic, game theory and information economics, this paper qualitatively analyzes the theoretical causes of stock market bubble and points out that asymmetric information, irrational investing behavior, contradiction between demand and supply as well as duopoly is major factors that result stock market bubble. This paper also sets up an intrinsic bubble model to describe the development of a kind of stock market bubble, which includes only an exogenous fundamental, dividend. Using the data of Shanghai Stock Exchange from June 1996 to December 2001, an empiric tests is done about the intrinsic model. The conclusion is that in Chinese stock market, there is statistically evident evidence to prove that there is intrinsic bubble caused by dividends or information about dividends. Some other factors may result in stock market bubble in China, such as investors, market manipulation, government intervention, listed company and disclosure of information.
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spelling nottingham-215372018-01-30T22:37:52Z https://eprints.nottingham.ac.uk/21537/ How do the models to measure bubbles in the stock market Ding, Yun Bubble economy is a phenomenon frequently occurs in the process of finance opening and an essential factor contributing to financial crisis. Once bubbles burst, financial crisis is quite possible. Stock market bubble is a key component of a countrys economic bubble, thus it is important to analyze the developing process of stock market bubble and to find out the method to eliminate harmful bubble component. The thesis organizes a static index system to measure the bubble component in a stock market and work out the indexes in Chinese stock market. Compared with the indexes in some other countries stock market, the data show that there is big bubble component in Chinese stock market. Using some theories in microeconomic, game theory and information economics, this paper qualitatively analyzes the theoretical causes of stock market bubble and points out that asymmetric information, irrational investing behavior, contradiction between demand and supply as well as duopoly is major factors that result stock market bubble. This paper also sets up an intrinsic bubble model to describe the development of a kind of stock market bubble, which includes only an exogenous fundamental, dividend. Using the data of Shanghai Stock Exchange from June 1996 to December 2001, an empiric tests is done about the intrinsic model. The conclusion is that in Chinese stock market, there is statistically evident evidence to prove that there is intrinsic bubble caused by dividends or information about dividends. Some other factors may result in stock market bubble in China, such as investors, market manipulation, government intervention, listed company and disclosure of information. 2007 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/21537/1/06MSClixyd6.pdf Ding, Yun (2007) How do the models to measure bubbles in the stock market. [Dissertation (University of Nottingham only)] (Unpublished) bubbles Stock Market Shanghai Stock Market Models stock market bubbles
spellingShingle bubbles
Stock Market
Shanghai Stock Market
Models
stock market bubbles
Ding, Yun
How do the models to measure bubbles in the stock market
title How do the models to measure bubbles in the stock market
title_full How do the models to measure bubbles in the stock market
title_fullStr How do the models to measure bubbles in the stock market
title_full_unstemmed How do the models to measure bubbles in the stock market
title_short How do the models to measure bubbles in the stock market
title_sort how do the models to measure bubbles in the stock market
topic bubbles
Stock Market
Shanghai Stock Market
Models
stock market bubbles
url https://eprints.nottingham.ac.uk/21537/