We look into determinants (volatility, crises, sentiment and the U.S. ‘fear’ index) of herding using BRICS as our sample. Investors herd selectively to crises and herding is a short-lived phenomenon. Herding was highest during the global financial crisis (only China was affected). There was...

How do peers influence people's choices? We explore this fundamental question by exploiting unique data produced by, and a natural experiment conducted on, students from the United States Naval Academy (USNA). We develop a conceptual framework to highlight that individuals can emulate others for...

The aim of this study is to investigate the herding of beta transmission between return and volatility. We have used the dynamic conditional correlation model with the mixed-data sampling (DCC-MIDAS) model for the analysis. The evidence demonstrates that herding is a key transmitter in...

This paper focuses on determining the factors influencing investors' risk-taking through empirical evidence from Vietnam. This study investigates risk perception, expected return and herding behavior, and other determinants such as historical volatility and subjective financial risk attitude;...

We look into determinants (volatility, crises, sentiment and the U.S. ‘fear’ index) of herding using BRICS as our sample. Investors herd selectively to crises and herding is a short-lived phenomenon. Herding was highest during the global financial crisis (only China was affected). There was...

This paper analyzes the herding behavior that characterizes lenders’ lending decisions on a microloan platform and explains how rational herding behavior can resolve the information-asymmetry problem, which is a well-known reason for the failure of online microloan platforms. Using a set of...

We review here theory and evidence relating to herd behavior, payoff and reputational interactions, social learning, and informational cascades in capital markets. We offer a simple taxonomy of effects, and evaluate how alternative theories may help explain evidence on the behavior of investors,...

This paper examines the geographic herding behavior of Corporate Social Responsibility (CSR). We find a comovement between local firms' CSR scores operating in the same industry after controlling for known regional determinants. Furthermore, our results are most robust for firms headquartered in...

We apply two state-space models based on the cross-sectional dispersion of the factor sensitivities of securities for extracting the time series of herding towards the market, size/growth (SMB), value (HML), operating profitability (RMW), investment (CMA) and momentum (WML) factors. The sample...

The paper probes the sector-wise presence of volatility persistence, herding behavior and corresponding implications on investors and policymakers in the Oceania region both in Pre-COVID & Post-COVID era. The inspection is based on seven identical sectors from both Australia and New Zealand...

This study investigates high-frequency herding behavior in TOPIX 100 index-listed stocks and its impact on stock prices over different time horizons around tick size reduction on the Tokyo Stock Exchange. Our results show that high-frequency herding exists, especially at very short time...

This study tried to document Herding Behavior in the stock market of Bangladesh following the investigation of Paulo Leo and Harmindar Singh (2010). Following the methodology and approach of Chang et al. (2000) and Tan et al. (2008), this study used the Cross-Sectional Absolute Deviation (CSAD)...

We uncover a negative correlation between macroeconomic uncertainty and security analyst earning forecasts dispersion, and explain it through herding behavior bias of the analysts. We find that the herding firms, whose analysts suffer the herding bias, have greater firm-level uncertainty than...

How does stablecoin design affect market behavior during turbulent periods? Stablecoins attempt to maintain a "stable" peg to the US dollar, but do so with widely varying structural designs. The spectacular collapse of the TerraUSD (UST) stablecoin and the linked Terra (LUNA) token in May 2022...

This paper investigates whether herd behaviour states (intense/adverse) affect stock market returns using a fixed effects model to capture cross-sectional and time variability covering the European region. We show that herd behaviour negatively impacts stock returns on average. From December...

This study investigates how financial literacy and behavioral traits affect the adoption of electronic payment (ePayment) services in Japan. We construct a financial literacy index using a representative sample of 25,000 individuals from the Bank of Japan's 2019 Financial Literacy Survey. We...

This paper examines the herd behavior in six segmented markets on the Chinese stock markets. Using the OLS, GARCH, Quantile Regression, and State Space Models to examine the daily returns from 2003 to 2018, we find that herd behavior exists widely in all the segmented markets examined in China,...

With complex network methods to model the investor interaction relationship, the interactive patterns of online investors are studied through the motif structure of the investor interaction network in the stock forum, and we find that there is a dynamic mutual effect between investors'...

This study investigates the role of financial market uncertainty in institutional herding and its impact on stock prices. We show that financial market uncertainty is a determinant of institutional herding. Fund managers tend to follow the trades of other managers more frequently during high...

This study examines the causality relationship between information asymmetry and herding behavior by considering the factors of regret and cognitive dissonance. The moderated-moderation model assigns regret as the first-order moderator and cognitive dissonance as the second-order moderator. The...

This paper investigates the role of more action choices in a simple informational cascades (IC) model (Welch (1992), Bikhchandani, Hirshleifer, and Welch (1992)). In the canonical binary signal model with a diffuse prior on the underlying best choice, cascades disappear when agents have...

Financial uncertainty is a key determinant in investment decisions. This study explores whether investors herd in response to economic policy uncertainty (EPU) and their effect on stock prices. Daily data ranging from July 16, 2011, to August 4, 2022, of stock-listed companies in Saudi Arabia,...

When a business model innovation (BMI) appears, incumbent firms experience great uncertainty about its potential ramifications and their capacity to assimilate the new business model. To resolve such uncertainty, incumbents seek to learn from industry peers, which can spark organizational...

Financial markets and economic conditions induce stress, but does stress, in turn, have a causal effect on investor behavior and markets? We analyze this question in bubble-prone experimental asset markets with 492 participants. We induce acute stress, which we measure with cortisol levels,...

We analyze herding behavior in the Chinese stock markets in the context of the COVID-19 pandemic using the cross-sectional absolute deviation (CSAD) model proposed by Chang et al. (2000) to detect herding behavior in the time period between January 30, 2001, and June 12, 2020. We consider stock...

We introduce a new methodology to categorize institutional herding tendency and direction, that enhances the precision with which herders are identified at the institutional level. The herders are the ones that follow the crowd both on the buy and sell trades, whereas anti-herders are the...

In this study, we use high-frequency microstructure components to explore commodity ETF herding. We employ a new GARCH model incorporating cross-sectional and market volatility at 15-, 30-, 45-, and 60-minute intervals. We document that during market instability and the COVID-19 pandemic,...

This study examines the role of economic policy uncertainty (EPU) in influencing firm performance and leverage as a form of financing decisions, in the presence of herding in the emerging markets of Brazil, Russia, India, China and South Africa (BRICS). This study contributes to our...

We look into determinants (volatility, crises, sentiment and the U.S. 'fear' index) of herding using BRICS as our sample. Investors herd selectively to crises and herding is a short-lived phenomenon. Herding was highest during the global financial crisis (only China was affected). There was no...

According to the widely known ‘culture of honor’ hypothesis from social psychology, traditional herding practices have generated a value system conducive to revenge-taking and violence. We test the economic significance of this idea at a global scale using a combination of ethnographic and...

This article sheds light on a scarcely explored area of research related to herd behavior in urban settings of developing economies, where the use of motorized twowheelers has been increasing rapidly. Using primary survey-based data from Nepal, we examine whether potential motorcycle buyers in...