Abstract Based on the existing studies, this study clarifies the differences and relations among the four proxies, and sorts out an analytical framework of irrational behavior affecting the pricing efficiency of stock market, which have some implications for future research. The literature shows that the irrational behaviors of investors and media may reduce the efficiency of capital markets, thus affect the information content and crash risk of the firms’ stock price. The future research can use new technology to explore the effects of the irrational behavior of investors and media on the capital market from the perspectives of corporate financial decisions and regulatory innovations.
