Abstract:

 This paper examines the factors influencing the trading decisions of individual investors in Chinese stock market in the situation of rumors spread about listed companies based on a rumor questionnaire by using the logit and multinomial logit models. Results show that their trading probability may be influenced by the importance, transmission and clarification of rumors, by the trading behavior of those who send rumors, and by relatively changing stock prices, but the effects of these factors are not significantly different in buying and selling decisions. The credibility of rumors only affects their buying probability, and their attitude about rumors simply affects their selling probability. The conclusions can help better understand the decision process of individual investors, thus improving rumor governance.
Key words：

Key words:  , rumors about listed companies｜ individual investors｜ trading decisions