Does Stock Market Contribute to the Growth of Company? An Agent-Based Simulation of Industrial Model in Which Stock Markets and Product Markets Exist

Abstract

In this Study, we design a multi agent system within various agents such as enterprise agents, investor agents, and customer agents in our model. Enterprise agents using stock as collateral for loans from banks, they use these resources to execute business activities such as purchase and production, and sell products to consumers to gain profit, part of profit will become dividends to investors. We design a simplemodel of enterprises' financial statements. Not only technical analysis but also fundamental analysis will be implemented as measures of investments in our model. We will clear up influence of trading strategies of investor agents in the artificial market to business managements in our agent based model. As the results, measures of investments of investors in a stock market influence on business activities in our rational assumptions. Totally, the environments exert healthy influence on business activities are trend strategy dominating markets and random strategy dominating markets. The key point is a stable stock price or a good predictability of stock price.