directionless herding activities, and also of positive feedback trading by mutual fund managers in Taiwan. Our results show a …This paper analyzes the trading activity of Taiwanese open-end equity mutual fund herding behaviour over the period of … 1996 to 2008. We employ the herding measure suggested by Wermers (1999) and find strong evidence of both directional and …

Exiting studies document that institutional herding has a stabilizing effect on stock prices, as stock returns over one …- to three-quarter horizons are positively correlated with herding. The literature also shows that short-term institutions … herding. Our results show that herding by short-term institutions promotes price discovery. In contrast, herding by long …

We study the price impact of daily institutional herding induced by information events. Using analyst recommendation … changes as a proxy, we find that institutional herding on recommendation changes is short–lived. Daily institutional herding …, on average, destabilizes price. However, herding accompanied by information arrival has the opposite effect. We find no …

-based predictions for how information risk and market stress influence aggregate herding intensity. We test these predictions … sell herding. The model also explains why buy, not sell, herding is more pronounced during the financial crisis. …